Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

(4)

Proposed maximum aggregate value of transaction:

(5)

Total fee paid:

o

Fee paid previously with preliminary materials.

o

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.

You
are cordially invited to attend our annual meeting of stockholders on Thursday, April 26, 2012. We will hold the meeting at 10:00 a.m., Central Time, in the lower level
auditorium at our headquarters located at CityPlace One, One CityPlace Drive, St. Louis, Missouri 63141. You can find maps with directions to our headquarters near the back of the proxy
statement that accompanies this letter.

In
connection with the annual meeting, we have enclosed a notice of the meeting, a proxy statement and a proxy card. We have also enclosed a copy of our annual report for 2011 which
contains detailed information about us and our operating and financial performance.

I
hope that you will be able to attend the meeting, but I know that not every stockholder will be able to
do so. Whether or not you plan to attend, I encourage you to vote your shares. You may vote by telephone or via the Internet, or complete, sign and return the enclosed proxy card in the
postage-prepaid envelope, also enclosed. The prompt execution of your proxy will be greatly appreciated.

The annual meeting of stockholders (the "Annual Meeting") of Arch Coal, Inc. will be held in the lower level auditorium
at our headquarters located at CityPlace One, One CityPlace Drive, St. Louis, Missouri 63141 on Thursday, April 26, 2012 at 10:00 a.m., Central Time, for the following
purposes:

(1)

To
elect the five nominees for director named in the attached proxy statement;

(2)

To
ratify the appointment of Ernst & Young LLP, independent registered public accounting firm, as our independent auditors for the year ending
December 31, 2012;

(3)

To
vote on an advisory resolution to approve executive compensation;

(4)

To
consider one stockholder proposal described in the accompanying proxy statement, if properly presented at the Annual Meeting; and

(5)

To
transact any other business that may properly come before the Annual Meeting or any adjournment(s) or postponement(s) thereof.

The
close of business on March 1, 2012 has been fixed as the record date for the determination of stockholders entitled to receive notice of and to vote at the Annual Meeting or
any adjournment(s) or postponement(s) thereof. This Notice, the proxy statement and the form of proxy/voting instruction card are first being sent or made available to stockholders on or about
March 16, 2012.

An admittance card or other proof of ownership is required to attend the Annual Meeting. If you are a stockholder of record,
please retain the
admission card printed on the enclosed proxy card for this purpose. If your shares are held by a bank, broker or other nominee, you will have to request that such person in whose name the shares are
held to provide you with evidence of your beneficial ownership, such as a current broker's statement.

By Order of the Board of Directors

ROBERT G. JONES

Senior Vice President-Law, General Counsel and Secretary

YOUR VOTE IS IMPORTANTYOU ARE URGED TO VOTE YOUR SHARES VIA THE INTERNET, BY TOLL-FREE TELEPHONE NUMBER OR BY SIGNING, DATING AND PROMPTLY RETURNING YOUR PROXY CARD IN
THE ENCLOSED ENVELOPE.

The 2012 annual meeting of stockholders (the "Annual Meeting") of Arch Coal, Inc., a Delaware corporation ("Arch" or the "Company"),
will be held on Thursday, April 26, 2012. The Annual Meeting will be held at 10:00 a.m., Central Time, in the lower level auditorium at our headquarters located at CityPlace One, One
CityPlace Drive, St. Louis, Missouri 63141. You can find maps with directions to our headquarters under "Directions to the Annual Meeting" in this proxy statement.

Who May Vote at the Annual Meeting?

Stockholders of the Company at the close of business on March 1, 2012, the record date for the Annual Meeting, are entitled to
receive notice of and to vote at the Annual Meeting or any adjournments or postponements of the Annual Meeting. On the record date, Arch had 212,075,792 shares of common stock outstanding.

Who Can Attend the Annual Meeting?

All Arch stockholders on the record date are invited to attend the Annual Meeting. Each stockholder planning to attend the Annual
Meeting will be asked to present valid photo identification, such as a driver's license or passport. In addition, each stockholder must present his or her admission ticket, which is a
portion of the enclosed proxy card. Please tear off the ticket at the perforation. If your shares are not registered in your name and you would like to attend the Annual Meeting, please
ask the broker, trust, bank or other nominee in whose name the shares are held to provide you with evidence of your beneficial ownership, such as a current broker's statement.

No
cameras, camcorders, videotaping equipment, other recording devices or large packages will be permitted in the Annual Meeting. Photographs may be taken by Arch employees or
independent contractors at the Annual Meeting, and those photographs may be used by Arch. By attending the Annual Meeting, you will be agreeing to Arch's use of those photographs and waive any claim
or rights with respect to those photographs and their use.

What Items Will Be Voted On at the Annual Meeting?

Stockholders will vote on four items at the Annual Meeting:

Management Proposals:



The election of five director nominees to the board of directors (the "Board") of the Company (Proposal No. 1);



Ratification of the appointment of Ernst & Young LLP, independent registered public accounting firm, as our
independent auditors for the year ending December 31, 2012 (Proposal No. 2);



To vote on an advisory resolution to approve executive compensation (Proposal No. 3); and

If your shares are registered in the name of a nominee, including your broker or bank, follow the instructions provided by your nominee
to vote your shares. In most instances, you will be able to vote over the telephone, via the Internet, or by mail. If your shares are registered in your name:

You may vote in person at the Annual Meeting. You can find maps with directions to our headquarters under "Directions to the
Annual Meeting" in this proxy statement.

You may vote by telephone. You can vote by calling the toll-free telephone number on your proxy card. Telephone
voting is available 24 hours a day, 7 days a week, until 11:59 p.m., Eastern Time, on the day before the Annual Meeting. If you vote by telephone, you do not need to return your
proxy card.

You may vote via the Internet. The website for Internet voting is on your proxy card. Internet voting is available
24 hours a day, 7 days a week, until 11:59 p.m., Eastern Time, on the day before the Annual Meeting. If you vote via the Internet, you do not need to return your proxy card.

You may vote by mail. If you choose to vote by mail, simply mark your proxy card, date and sign it, and return it in the
postage-paid envelope provided.

Can I Change My Vote Once I Vote By Telephone, Mail or Via the Internet?

Yes. You have the right to change or revoke your proxy (1) at any time before the Annual Meeting by (a) notifying
Robert G. Jones, Arch's Secretary, in writing, or (b) returning a later-dated proxy card; or (2) by voting in person at the Annual Meeting.

You have one vote for each share of our common stock that you owned at the close of business on the record date. These shares
include:



Shares registered directly in your name with our transfer agent, for which you are considered the "stockholder of record;"



Shares held for you as the beneficial owner through a broker, bank, or other nominee in "street name;" and



Shares credited to your account in our employee thrift plan.

How Do I Vote My Shares in the Dividend Reinvestment Plan or the Direct Stock Purchase Plan?

If you participate in our dividend reinvestment plan or our direct stock purchase plan, your proxy will also serve as an instruction to
vote the whole shares you hold under those plans in the manner indicated on the proxy. If your proxy is not received, the shares you hold in those plans will not be voted.

How Do I Vote My Shares Held in the Employee Thrift Plan?

If you are both a registered stockholder and a participant in our employee thrift plan, you will receive a single proxy card that
covers shares of our common stock credited to your plan account as well as shares of record registered in exactly the same name. Accordingly, your proxy card also serves as a voting instruction for
the trustee of the plan. If your plan account is not carried in exactly the same name as your shares of record, you will receive separate proxy cards for individual and plan holdings. If you own
shares through this plan and you do not return your proxy by April 16, 2012, the trustee will vote your shares in the same proportion as the shares that are voted by the other participants in
the plan. The trustee will also vote unallocated shares of our common stock held in the plan in direct proportion to the voting of allocated shares in the plan for which voting instructions have been
received unless doing so would be inconsistent with the trustee's duties.

Is My Vote Confidential?

Yes. Voting tabulations are confidential except in extremely limited circumstances. Such limited circumstances include contested
solicitation of proxies, when disclosure is required by law, to defend a claim against us or to assert a claim by us and when a stockholder's written comments appear on a proxy or other voting
material.

What Happens If I Do Not Give Specific Voting Instructions?

Stockholders of Record. If you are a stockholder of record and you either indicate when voting that you wish to vote as recommended by
the Board or
you sign and return a proxy card without giving specific voting instructions on any one or more matters, the proxy holders will vote your shares in the manner recommended by the Board on all such
matters presented in this proxy statement and as the proxy holders may determine in their discretion with respect to any other matters properly presented for a vote at the Annual Meeting. See the
section entitled "Other Matters" below.

Beneficial Owners of Shares Held in Street Name. If you are a beneficial owner of shares held in street name and you do not provide the
organization
that holds your shares with specific voting instructions, under the rules of applicable national securities exchanges, the organization that holds your shares may generally vote on routine matters but
cannot vote on non-routine matters. If the organization that holds your shares does not receive specific instructions from you on how to vote your shares on a non-routine
matter, such organization will inform the inspector of election that it does not have the authority to vote on this matter with respect to your shares. This is generally referred to as a "broker
non-vote."

Which Ballot Measures Are Considered "Routine" or "Non-Routine"?

The ratification of the appointment of Ernst & Young LLP, independent registered public accounting firm, as our independent
auditors for the year ending December 31, 2012 (Proposal No. 2) is a matter considered routine under applicable rules. A broker or other nominee may generally vote on routine matters,
and therefore no broker non-votes are expected to exist in connection with Proposal No. 2.

The
election of directors (Proposal No. 1), the advisory resolution to approve executive compensation (Proposal No. 3), and the stockholder proposal (Proposal No. 4)
are matters considered non-routine under applicable rules. A broker or other nominee cannot vote without instructions on non-routine matters, and therefore there may be broker
non-votes on Proposals No. 1, No. 3 and No. 4.

What Is the Voting Requirement to Approve Each of the Proposals?

For Proposal No. 1, the five nominees receiving the highest number of affirmative votes of the shares entitled to be voted for
them will be elected as directors to serve until their terms
expire and until their successors are duly elected and qualified. Abstentions are not counted for the purpose of the election of directors, and broker non-votes will have no effect on the voting
results.

Approval
of Proposals No. 2, No. 3 and No. 4 requires the affirmative vote of a majority of the shares present or represented by proxy and voting at the Annual
Meeting. Abstentions and broker non-votes will have no effect on the voting results with respect to these matters.

What "Quorum" Is Required for the Annual Meeting?

In order to have a valid stockholder vote, a quorum must exist at the Annual Meeting. For the Company, a quorum exists when
stockholders holding a majority of the outstanding shares of common stock are present or represented at a meeting. For these purposes, shares that are present or represented by proxy at the Annual
Meeting will be counted toward a quorum, regardless of whether the holder of the shares or proxy fails to vote on a particular matter or whether a broker with discretionary voting authority fails to
exercise such authority with respect to any particular matter.

Where Can I Find the Voting Results?

We intend to announce preliminary voting results at the Annual Meeting. We will publish the final results in a Current Report on
Form 8-K, which we expect to file within four business days after the Annual Meeting is held. You can obtain a copy of the Form 8-K by logging on to our website
at archcoal.com, by calling the Securities and Exchange Commission (SEC) at 800-SEC-0330 for the location of the nearest public reference room, or through the EDGAR system at
sec.gov. Information on our website does not constitute part of this proxy statement.

4

DIRECTORS AND CORPORATE GOVERNANCE PRACTICES

Overview

Arch is dedicated to being a market-driven global leader in the coal industry and to creating superior long-term
stockholder value. It is our policy to conduct our business with integrity and an unrelenting passion for providing the best value to our customers. All of our corporate governance materials,
including the Corporate Governance Guidelines, our Code of Business Conduct and our board committee
charters, are published under "Corporate Governance" in the Investors section of our website at archcoal.com. Information on our website does not constitute part of this proxy statement. The Board
regularly reviews these materials, Delaware law, the rules and listing standards of the New York Stock Exchange and SEC regulations, as well as best practices suggested by recognized governance
authorities, and modifies the materials as warranted.

Our
certificate of incorporation and bylaws provide for a Board that is divided into three classes as equal in size as possible. The classes have three-year terms, and the
term of one class expires each year in rotation at that year's annual meeting. The size of the Board can be changed by a two-thirds vote of its members. There are currently 14 members of
the Board:

James R. Boyd

Steven F. Leer

John W. Eaves

George C. Morris III

David D. Freudenthal

A. Michael Perry

Patricia Fry Godley

Robert G. Potter

Douglas H. Hunt

Theodore D. Sands

Brian J. Jennings

Wesley M. Taylor

J. Thomas Jones

Peter I. Wold

The Board met ten times during 2011. Each current director attended at least 75% of the aggregate of all of the meetings of the Board and
committees on which he or she served and attended the Company's 2011 annual stockholders meeting. Under the Company's Corporate Governance Guidelines,
each director is expected to spend the time needed and meet as frequently as necessary to properly perform their duties and responsibilities, including attending annual and special meetings of the
stockholders, the Board and committees of which he or she is a member.

Corporate Governance Guidelines and Code of Business Conduct

Corporate Governance Guidelines

The Board has adopted Corporate Governance Guidelines, which sets forth a framework
within which the Board, assisted by its committees, directs the affairs of the Company. These Guidelines address, among other items, the composition and
functions of the Board, director independence, stock ownership by and compensation of directors, and director qualification standards.

5

Code of Conduct

The Company has adopted the Code of Business Conduct, which is applicable to all
employees of the Company, including the principal executive officer, the principal financial officer and the principal accounting officer, as well as all directors of the Company.

The
Corporate Governance Guidelines and the Code of Business Conduct are available on the
Company's website under the "Corporate Governance" heading in the "Investors" section at archcoal.com and in print to any stockholder who requests them from the Company's Secretary. We intend to post
amendments to or waivers from (to the extent applicable to one of our directors or executive officers) the Code of Business Conduct at the same location
on our website. Information on our website does not constitute part of this proxy statement.

Director Independence

It is the Board's objective to have a substantial number of directors who are independent. The Corporate
Governance Guidelines incorporates the criteria established by the New York Stock Exchange to assist the Board in determining whether a director is independent. The Board has
determined, in its judgment, that all but two members, Steven F. Leer and John W. Eaves, each of whom are executive officers, meet the New York Stock Exchange standards for independence.
The independent members of the Board meet regularly without any members of management present. These sessions are normally held following or in conjunction with regular Board meetings.
Mr. James R. Boyd, chairman of the Nominating and Corporate Governance Committee and lead director, serves as the presiding director during executive sessions of the Board.

All
members of our Audit, Nominating and Corporate Governance and Personnel and Compensation Committees must be independent directors in accordance with our corporate governance
guidelines. Members of the Audit Committee must also satisfy a separate SEC independence requirement, which provides that they may not accept, directly or indirectly, any consulting, advisory or other
compensatory fee from us or any of our subsidiaries other than their directors' compensation.

Leadership Structure

Mr. Leer has served as both the chairman of our Board and our chief executive officer since being appointed as chairman in April
2006. Mr. Boyd served as the chairman of our Board from 1998 until April 2006 and has served as our lead director since stepping down as the chairman. The responsibilities of the lead
independent director include consulting with the chairman of the Board regarding agendas for Board meetings and presiding over meetings of the Board during executive sessions of the independent
directors.

The
Board has no fixed policy with respect to the separation of the offices of chairman and chief executive officer. Instead, the Board retains the discretion to make this determination
on a case-by-case basis from time to time as it deems to be in the best interest of the Company and our stockholders at any given time. In weighing the structure of the
chairman's role, the Board believes that the current Board leadership structure has been appropriate because it recognizes that the Company has benefitted from one person

6

speaking
for and leading the Company and the Board in order to promote unified leadership and direction, particularly given Mr. Leer's long history with the Company. In addition, the Board
believes that Mr. Leer has served effectively as a liaison between the Board and management by serving the Company in both capacities. In addition to retaining a strong lead independent
director, the Company's governance structure provides effective oversight of the Board through the following:



all but two members of our Board are independent;



the Board has established and follows robust Corporate Governance
Guidelines, which are routinely reviewed by the Board and are publicly available on our website;



our Nominating and Corporate Governance Committee, Personnel and Compensation Committee and Audit Committee are all
composed solely of independent directors; and

As
has been previously disclosed, Mr. Leer intends to retire from his position as chief executive officer of the Company after the Annual Meeting, while continuing to serve on the
Board. The Board will make a determination on the chairman role of the Board at the Board meetings that coincide with the Annual Meeting and will implement the leadership structure that it determines
to be in the best interest of the Company and our stockholders at that time.

The
entire Board is responsible for oversight of the company's risk management processes. Our Vice President of Enterprise Risk Management oversees risk management efforts, provides
periodic reports to the Board's Audit Committee and provides reports to our Board at least once per year. In addition, the Board and its standing committees periodically request supplemental
information or reports as they deem appropriate.

Director Qualifications, Diversity and Biographies

The Corporate Governance Guidelines provide that our Nominating and Corporate
Governance Committee and Board will nominate candidates for our board of directors who possess the following principal qualities: strength of character, an inquiring and independent mind, practical
wisdom, and mature judgment. In addition to these qualities, the selection criteria for nomination include recognized achievement, an ability to contribute to some aspect of our business, and the
willingness to make the commitment of time and effort required of a director.

As
described in more detail below, our Board believes that each of our directors meets such criteria and has attributes and experience that make him or her well qualified to serve. While
we do not have a formal diversity policy, in order to find the most valuable talent available to meet these criteria, our Board generally considers candidates diverse in geographic origin, gender,
ethnic background, and professional experience (private, public, and non-profit), pursuant to our Corporate Governance Guidelines.
Our goal is to include members with the skills and characteristics that, taken together, will assure a strong Board.

7

Our
directors have diverse backgrounds and provide experience and expertise in a number of critical areas. The Nominating and Corporate Governance Committee considers the particular
experience, attributes, reputation and qualifications of directors standing for re-election and potential nominees for election, as well as the needs of our Board as a whole and its
individual committees. In nominating candidates for election by our stockholders, both the Nominating and Corporate Governance Committee and the Board act pursuant to these guidelines. Both the
Nominating and Corporate Governance Committee and the Board assess the effectiveness of corporate governance policies, including with respect to diversity, through completion of an annual evaluation
process.

The
Nominating and Corporate Governance Committee has identified nine areas of expertise that are particularly relevant to service on the Board and has identified the directors whose key
areas of expertise qualify them for each of the listed categories. The categories identified by the Nominating and Corporate Governance Committee are:

CEO/Senior
Management  Experience working as a chief executive officer or senior officer of a major public or private company or
non-profit entity.

Energy 
Extensive knowledge and experience in the energy industry, either as a senior executive of an energy company, as a senior
executive of a customer of an energy company or through legal or regulatory experience on energy matters.

Environmental
and Safety  A thorough understanding of safety and environmental issues and energy industry regulations.

The following is a list of our directors, their ages as of March 1, 2012, their occupation during the last five years and certain other biographical
information, including the areas of expertise where each director or nominee is most skilled:

Since June 2011, Governor Freudenthal has been Senior Counsel with the law firm of Crowell & Moring, LLC. Governor Freudenthal served as the Governor of Wyoming from 2003 until January 2011. Prior to his service
as governor, he served as U.S. Attorney for the District of Wyoming. Governor Freudenthal currently serves as an Adjunct Professor at the University of Wyoming.

Governor Freudenthal contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his experience as Governor for the State of Wyoming. This experience has provided Governor
Freudenthal with a significant understanding of the regulatory and governmental issues facing the Company in our daily operations.

Since 1998, Ms. Godley has been a partner with the law firm of Van Ness Feldman, practicing in the areas of economic and environmental regulation of electric utilities and natural gas companies. Ms. Godley
is also a director of the United States Energy Association.

Ms. Godley contributes to the mix of experience and qualifications the Board seeks to maintain primarily through her work as an attorney in the areas of economic and environmental regulations. This experience has
provided Ms. Godley with an in-depth knowledge of the ever changing regulatory environment that the Company faces, and dealing with governmental agencies in this regulatory environment. From her work in this area, she also has an extensive
background in the energy industry and the environmental issues facing the Company.

Mr. Taylor was President of TXU Generation, a company engaged in electricity infrastructure ownership and management. Mr. Taylor served at TXU for 38 years prior to his retirement in 2004. Mr. Taylor
also serves on the board of directors of FirstEnergy Corporation.

Mr. Taylor contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his experience with TXU Generation, as well as his service as a member of the board of directors of
FirstEnergy Corporation. Mr. Taylor's experience has provided him with a strong background in the energy industry. In addition, as President of TXU Generation, Mr. Taylor brings to our Board the experience of guiding a company in all
aspects of its day-to-day operations.

Mr. Wold is President and co-owner of Wold Oil Properties, Inc., an oil and gas exploration and production company. He is also Vice President of American Talc Company, a corporation that mines and processes
talc in Western Texas. He presently chairs the Wyoming Enhanced Oil Recovery Commission and is a director of the Oppenheimer Funds, Inc. New York Board. Mr. Wold has also served in the Wyoming House of Representatives and as a director of the
Denver Branch of the Kansas City Federal Reserve Bank.

Mr. Wold contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his experience as President of Wold Oil Properties, Inc., as well as his positions with
Oppenheimer Funds, Inc. and the Kansas City Federal Reserve Bank. This experience has provided Mr. Wold with a deep understanding of the financial hurdles and constraints companies face in today's economy. In addition, as head of an energy
company, Mr. Wold has a strong understanding of the environmental and other regulatory issues the Company faces, particularly in the West.

Since March 2009, Mr. Morris has served as President of Morris Energy Advisors, Inc. From December 2006 until his retirement in March 2009, Mr. Morris served as a managing director at Merrill
Lynch & Co. Prior to 2006, Mr. Morris served as a managing director of investment banking at Petrie Parkman & Co. until its acquisition by Merrill Lynch & Co. in 2006, and also previously served as a
managing director of investment banking at Simmons & Company International, as a director of investment banking at Merrill Lynch & Co. and as a director of investment banking at The First Boston Corporation. Mr. Morris also
serves on the board of directors of Calumet GP, LLC, the general partner of Calumet Specialty Products Partners, L.P.

Mr. Morris contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his experience and roles with a variety of investment companies, including his most recent role as
a managing director at Merrill Lynch & Co. His experience in advising clients of investment companies provides Mr. Morris with a strong understanding of the financial hurdles public companies face, including the various financing
avenues available for a company. In addition, his board member experience adds additional valuable management and oversight knowledge to our Board.

Since February 2009, Mr. Jennings has been President and Chief Executive Officer of Rise Energy Partners, L.P. From February 2007 to June 2008, Mr. Jennings served as Chief Financial Officer of
Energy Transfer Partners GP, L.P., the general partner of Energy Transfer Partners, L.P., a publicly-traded partnership owning and operating intrastate and interstate natural gas pipelines. From 2004 to 2006, Mr. Jennings served
as Senior Vice President-Corporate Finance and Development and Chief Financial Officer of Devon Energy Corporation.

Mr. Jennings contributes to the mix of experience and qualifications the Board seeks to maintain through his experience as a senior officer in a variety of energy companies, with particular focus on financial and
accounting oversight. With his experience, Mr. Jennings brings to the Board a strong understanding of the financial and accounting issues the Company faces in our industry. We believe that this experience allows Mr. Jennings to efficiently
and effectively chair our Audit Committee.

Mr. Leer has been our Chief Executive Officer since 1992. From 1992 to 2006, Mr. Leer also served as our President. In 2006, Mr. Leer became Chairman of the board of directors. Mr. Leer also serves
on the boards of the Norfolk Southern Corporation, USG Corp., the Business Roundtable, the University of the Pacific, Washington University and is past chairman of the Coal Industry Advisory Board. Mr. Leer is past chairman and continues to
serve on the boards of the Center for Energy and Economic Development, the National Coal Council and the National Mining Association.

Mr. Leer contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his position as Chief Executive Officer and Chairman of the Company. As Chief Executive Officer and
Chairman, Mr. Leer has in-depth knowledge of all aspects of the Company's business and close working relationships with all of the Company's senior executives.

Mr. Potter was Chairman and Chief Executive Officer of Solutia, Inc. from 1997 until his retirement in 1999. He is also an investor in several private companies and has served as a member of the board of
directors for six other companies.

Mr. Potter contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his roles with Solutia, Inc. As a former Chairman and Chief Executive Officer of Solutia,
Inc., Mr. Potter has the experience overseeing the operations of a large public company. This experience has provided him with a strong understanding of the long-term planning requirements for a large public company, as well as an in-depth
knowledge of the corporate governance required for a public company.

Since 1999, Mr. Sands has served as President of HAAS Capital, LLC, a private consulting and investment company. Mr. Sands served as Managing Director, Investment Banking for the Global Metals/Mining Group
of Merrill Lynch & Co. from 1982 until 1999. Mr. Sands has also served as a member of the board of directors for several other companies.

Mr. Sands contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his role at Merrill Lynch and as the head of a private investment company. In leading an investment
company in today's economy, Mr. Sands has a strong understanding of the financial hurdles public companies face, as well as an in-depth knowledge of the various financing avenues available for a company. In addition, his past experience as a
board member for several other companies adds valuable prior oversight experience to our existing board of directors.

Mr. Boyd served as chairman of the board of directors from 1998 to 2006, when he was appointed our lead director. Mr. Boyd served as Senior Vice President and Group Operating Officer of Ashland Inc. from 1989
until his retirement in 2002. Mr. Boyd also serves on the board of directors of Halliburton Inc.

Mr. Boyd contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his years of experience in senior management at Ashland Inc. and his other public company board
experience. At Ashland Inc., Mr. Boyd was a senior executive, charged with oversight of key aspects of the company's daily operations. In addition, his experience serving on the board of Halliburton Inc. brings additional insight over the
management of large public companies. As a result of this experience, Mr. Boyd brings to our Board in-depth knowledge of the energy industry, corporate governance and company oversight, an extensive understanding of our markets and customers,
and a strong understanding of finance and executive management.

Mr. Eaves has been our President and Chief Operating Officer since 2006. From 2002 to 2006, Mr. Eaves served as our Executive Vice President and Chief Operating Officer. Mr. Eaves also serves on the board
of directors of COALOGIX.

Mr. Eaves contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his position as President and Chief Operating Officer of the Company. As President and Chief
Operating Officer, and as a result of the experience he has gained during his tenure with the Company, Mr. Eaves has intimate knowledge of all aspects of the Company's business and close working relationships with all of the Company's senior
executives. In addition, as Chief Operating Officer, Mr. Eaves has an extensive understanding of the Company's industry and customer base.

Since 1995, Mr. Hunt has served as Director of Acquisitions of Petro-Hunt, LLC, a private oil and gas exploration and production company.

Mr. Hunt contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his long-time position as a senior officer for Petro-Hunt, LLC. As Director of Acquisitions of Petro-Hunt, LLC,
Mr. Hunt has significant experience as a senior officer in the energy industry and in the strategic planning of companies as they look to grow their business.

Mr. Jones has been Chief Executive Officer of West Virginia United Health System located in Fairmont, West Virginia since 2002. From 2000 to 2002, Mr. Jones served as Chief Executive Officer of Genesis
Hospital System in Huntington, West Virginia. Mr. Jones is also a director of Premier, Inc. and Health Partners Network.

Mr. Jones contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his services as Chief Executive Officer of health systems in the State of West Virginia. Being
in charge of companies in a heavily regulated industry, Mr. Jones brings the valuable experience of assisting a company navigate through an ever changing regulatory background. In addition, as a senior officer, Mr. Jones brings strong
experience in handling key financial decisions for the long-term benefit of a company.

Mr. Perry served as Chairman of Bank One, West Virginia, N.A. from 1993 and as its Chief Executive Officer from 1983 until his retirement in 2001. Mr. Perry also serves on the board of directors
of Champion Industries, Inc.

Mr. Perry contributes to the mix of experience and qualifications the Board seeks to maintain primarily through his service with Bank One, West Virginia, N.A., together with his membership on other
boards. As a result of this experience, Mr. Perry brings to the Board a strong finance and accounting background, and has experience in handling, as a senior executive in charge of a financial institution and as a board member of other companies,
the long-term strategic planning of a corporation.

Board Meetings and Committees

The Board has the following five committees: Nominating and Corporate Governance, Finance, Personnel and Compensation, Audit and Energy
and Environmental Policy. The table below contains information concerning the membership of each of the committees as of December 31, 2011, and the number of times the Board and each committee
met during 2011. Each director attended at least 75% of the total number of meetings of the Board and of the committees on which he or she serves. In addition, all directors attended last year's
annual meeting.

Mr. Morris
is not included in the above table because he was elected to the Board in March 2012. In addition to being a member of the Board, he
currently serves on the Audit and Finance Committees.

Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee is responsible for the following
items:



identifying individuals qualified to become directors and recommending candidates for membership on the Board and its
committees, as described under the heading "Nomination Process for Election of Directors";



developing and recommending the corporate governance guidelines to the Board;



reviewing and recommending compensation of non-employee directors; and



reviewing the effectiveness of board governance, including overseeing an annual assessment of the performance of the Board
and each of its committees.

The
Board has determined, in its judgment, that the Nominating and Corporate Governance Committee is composed entirely of independent directors as defined in the New York Stock Exchange
listing standards and operates under a written charter adopted by the board of directors, a copy of which is published under "Corporate Governance" in the Investors section of our website at
archcoal.com.

The
Board has determined, in its judgment, that the Personnel and Compensation Committee is composed entirely of independent directors as defined in the New York Stock Exchange listing
standards and operates under a written charter adopted by the entire board of directors, a copy of which is published under "Corporate Governance" in the Investors section of our website at
archcoal.com. The report of the Personnel and Compensation Committee can be found under "Personnel and Compensation Committee Report" in this proxy statement.

confirming the qualifications and independence of our independent registered public accounting firm;



evaluating the performance of our internal audit function and our independent registered public accounting firm; and



reviewing our compliance with legal and regulatory requirements.

The
Audit Committee is directly responsible for the appointment, compensation and oversight of the work of our independent registered public accounting firm. The Board has determined, in
its judgment, that the Audit Committee is composed entirely of independent directors in compliance with the New York Stock Exchange listing standards and Rule 10A-3 of the
Securities Exchange Act of 1934. The Audit Committee operates under a written charter adopted by the Board, a copy of which is published under "Corporate Governance" in the Investors section of our
website at archcoal.com.

The Board has also determined, in its judgment, that Mr. Jennings is an "audit committee financial expert" and that each member of the Audit Committee is
"financially literate." Our corporate governance guidelines do not currently restrict the number of audit committees of public companies on which members of our Audit Committee may serve. The Board
has determined that none of the members of the Audit Committee currently serves on the audit committees of more than three public companies. The report of the Audit Committee can be found under "Audit
Committee Report" in this proxy statement.

Energy and Environmental Policy Committee

The Energy and Environmental Policy Committee reviews, assesses and provides advice to the Board on current and emerging energy and
environmental policy trends and developments that affect or could affect us. In addition, the Energy and Environmental Policy Committee makes recommendations concerning whether, and to what extent, we
should become involved in current and emerging energy and environmental policy issues.

Director Retirement/Resignation Policies

Our Board has a policy requiring members to resign from their position on the Board effective at the Company's annual meeting
immediately following a member's 72nd birthday. Vacancies on the Board may be filled by a majority of the remaining directors. A director elected to fill a vacancy, or a new directorship
created by an increase in the size of the Board, serves for the remainder of the full term of the class of directors in which the vacancy or newly created directorship occurred. Two of the Company's
directors, Mr. Perry and Mr. Potter, have offered their resignations under this policy, but the Board has requested that they continue their service on the Board, and each has agreed,
for an additional period of time not to extend past the 2013 annual meeting of stockholders.

The
Corporate Governance Guidelines requires any nominee for director in an uncontested election who receives a greater number of votes
"withheld" from his or her election than votes "for" such election to offer his or her resignation to the Board. In the event a resignation is tendered, the Nominating and Corporate Governance
Committee and the Board will evaluate the best interests of the Company and its stockholders and make a determination on the action to be taken with respect to such offered resignation, which may
include (i) accepting the resignation, (ii) maintaining the director but addressing the underlying cause of the withheld votes, (iii) resolving that the director will not be
re-nominated in the future for election, or (iv) rejecting the resignation. Following a determination by the Board, the Company will disclose the Board's decision in a filing with
the Securities and Exchange Commission, a press release, or other broadly disseminated means of communication. Each nominee for election at the Annual Meeting has agreed to follow this policy as set
forth in the Corporate Governance Guidelines.

Conflicts of Interest

Our code of conduct reflects our policy that all of our employees, including the named executive officers, and directors must avoid any
activity that creates, or may create, a conflict of interest that might interfere with the proper performance of their duties or that might be hostile, adverse or competitive with

our
business. In addition, each of our directors and executive officers is encouraged to notify our Board when confronted with any situation that may be perceived as a conflict of interest, even if
the person does not believe that the situation would violate our Code of Business Conduct or Corporate Governance
Guidelines. The Board will then determine, after consultation with counsel, whether a conflict of interest exists. Directors who have a material personal interest in a
particular issue may not vote on any matters with respect to that issue.

Compensation Committee Interlocks and Insider Participation

The identities of the directors who served on the Personnel and Compensation Committee during 2011 are set forth under the report of
the Personnel and Compensation Committee under "Personnel and Compensation Committee Report" in this proxy statement. None of the directors who served on the Personnel and Compensation Committee
during 2011 has been an officer or employee of Arch. None of our executives has served on the Board or compensation committee of any other entity that has or has had one or more executives serving as
a member of our Board or compensation committee.

Nomination Process for Election of Directors

The Nominating and Corporate Governance Committee has responsibility for assessing the need for new directors to address specific
requirements or to fill a vacancy. The committee initiates a search for a new candidate seeking input from our chairman and from other directors. The committee may retain an executive search firm to
identify potential candidates. All candidates must meet the requirements specified in our Corporate Governance Guidelines. Candidates who meet those
requirements and otherwise qualify for membership on our Board are identified, and the committee initiates contact with preferred candidates. The committee regularly reports to the Board on the
progress of the committee's efforts. The committee meets to consider and approve final candidates who are then presented to the Board for consideration and approval. Our chairman or the chairman of
the Nominating and Corporate Governance Committee may extend an invitation to join the Board.

Stockholder
recommendations should be submitted in writing to Robert G. Jones, our secretary, and should include information regarding nominees required under our bylaws.
Individuals recommended by stockholders will receive the same consideration received by individuals identified to the Nominating and Corporate Governance Committee through other means.

Communicating with the Board of Directors

Our Board has established procedures intended to facilitate stockholder communication directly with the Board, the
non-employee directors or the Audit Committee. Such communications may be confidential or anonymous, and may be reported by phone to our confidential hotline at
866-519-1881 or by writing to the individual directors or group in care of Arch Coal, Inc., One CityPlace Drive, Suite 300, St. Louis, Missouri 63141, Attention:
Senior Vice President-Law, General Counsel and Secretary. All such communications are promptly communicated to the lead director, the chairman of the Audit Committee or our Director of
Internal Audit, as appropriate.

A total of five directors are up for election at the Annual Meeting. The terms of four directors (Messrs. Freudenthal, Taylor
and Wold and Ms. Godley) will expire at the Annual Meeting. Our Board has nominated each of those individuals for re-election for a three-year term that will expire in
2015. In addition, as part of the Board's succession planning process and upon the recommendation of the Nominating and Corporate Governance Committee, Mr. Morris was appointed to the Board in
March 2012. It is our Board's policy to have each member of the Board that is appointed outside the normal annual stockholder meeting process to come up for election at the annual meeting immediately
after such member is appointed to the Board. As a result, Mr. Morris has been nominated for election as a Class II Director, and if elected will serve a term that will expire at the 2014
annual meeting.

The
Board is not aware that any nominee will be unwilling or unable to serve as a director. All nominees have consented to be named in the proxy statement and to serve if elected. If,
however, a nominee is unavailable for election, your proxy authorizes us to vote for a replacement nominee if the Board names one. As an alternative, the Board may reduce the number of directors to be
elected at the Annual Meeting.

RATIFICATION OF THE APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PROPOSAL NO. 2)

Ernst & Young LLP was our independent registered public accounting firm for 2011. The Audit Committee has appointed
Ernst & Young LLP as our independent registered public accounting firm for 2012. The Audit Committee and the Board are requesting that stockholders ratify this appointment. In the event the
stockholders do not ratify the selection of Ernst & Young LLP, the Audit Committee will reconsider its selection. Even if the selection is ratified, the Audit Committee, in its discretion, may
direct the appointment of a different independent registered public accounting firm at any time during the fiscal year if the Audit Committee believes such a change would be in our best interests and
the best interests of our stockholders.

Representatives
of Ernst & Young LLP are expected to be present at the Annual Meeting and to respond to questions.

Fees Paid to Auditors

The following table sets forth the fees accrued or paid to Ernst & Young LLP, the Company's independent registered public
accounting firm, for the years ended December 31, 2011 and December 31, 2010:

Fee

Service

2011

2010

Audit(1)

$

2,399,372

$

1,527,231

Audit-Related(2)

46,500



Tax(3)

151,136



All Other(4)



65,989

(1)

Audit
services performed by Ernst & Young LLP in 2011 and 2010 included the annual financial statement audit (including required quarterly reviews)
and other procedures performed by Ernst & Young LLP to form an opinion on our consolidated financial statements and to issue their consent to include their audit opinion in registration
statements we filed with the SEC. Audit services in 2011 and 2010 also included the deliverance of comfort letters by Ernst & Young LLP in connection with the issuance of common stock and
senior notes in offerings in June 2011 and the issuance of senior notes in an offering completed in September 2010.

(2)

Audit-related
fees in 2011 relate to due diligence procedures performed by Ernst & Young LLP in connection with potential business acquisitions.

(3)

Fees
for tax services and related expenses in 2011 related to tax advice and tax planning services performed by Ernst & Young LLP.

(4)

All
other services performed by Ernst & Young LLP in 2010 include process review and assessment services.

The Audit Committee has adopted an audit and non-audit services pre-approval policy that requires the committee, or the
chairman of the committee, to pre-approve services to be provided by our independent registered public accounting firm. The Audit Committee will consider whether the services to be
provided by the independent registered public accounting firm are prohibited by the SEC's rules on auditor

independence
and whether the independent registered public accounting firm is best positioned to provide the most effective and efficient service. The Audit Committee is mindful of the relationship
between fees for audit and non-audit services in deciding whether to pre-approve such services. The Audit Committee has delegated to the chairman of the committee
pre-approval authority between committee meetings, and the chairman must report any pre-approval decisions to the committee at the next regularly scheduled committee meeting.
All non-audit services performed by Ernst & Young LLP in 2011 and 2010 were pre-approved in accordance with the procedures established by the Audit Committee.

Based on the voting results for the proposal considered by our stockholders at the 2011 annual meeting of stockholders regarding the
frequency of stockholder votes on executive compensation, and the consideration of these results by the Board, the Board has adopted a policy to hold an annual advisory vote on executive compensation
until the next required vote on the frequency of such advisory votes. We are required to hold such frequency votes at least every six years. We are seeking advisory stockholder approval of the
compensation of named executive officers as disclosed in the section of this proxy statement entitled "Executive Compensation." Stockholders are being
asked to vote on the following advisory resolution:

"RESOLVED, that the stockholders advise that they approve the compensation of the Company's named executive officers, as disclosed pursuant to the compensation
disclosure rules of the Securities and Exchange Commission (which disclosure includes the Compensation Discussion and Analysis, the compensation tables, and any related material)."

The compensation of our named executive officers (NEOs) is designed to tie a substantial percentage of a NEO's compensation to the attainment of financial and
other performance measures that, the Board believes, promote the creation of long-term stockholder value and position the Company for long-term success. As described more fully
in the Compensation Discussion and Analysis (CD&A), the total mix of compensation that the Company offers its NEOs is designed to enable the Company to
attract and maintain top talent while, at the same time, creating a close relationship between performance and compensation. The Personnel and Compensation Committee and the Board believe that the
design of the program, and as a result the compensation awarded to NEOs under the current program, fulfills this objective.

Stockholders
are urged to read the CD&A section of this Proxy Statement, which discusses in detail how our compensation policies and procedures implement our compensation philosophy.

Although
the vote on this Proxy Item No. 3 is non-binding, the Board will review the voting results in connection with its ongoing evaluation of the Company's
compensation program. The final decision on the compensation and benefits of our NEOs remains with the Board.

Recommendation of the Board

The Board recommends a vote "FOR" the following resolution at the Annual Meeting:

"RESOLVED, that the stockholders advise that they approve the compensation of the Company's named executive officers, as disclosed
pursuant to the compensation disclosure rules of the Securities and Exchange Commission (which disclosure includes the Compensation Discussion and Analysis, the compensation tables, and any related
material)."

Our Company has received notice of the intention of stockholders to present the following proposal for voting at the Annual Meeting.
The text of the stockholder proposal and supporting statements appear exactly as received, other than minor formatting changes, by our Company unless otherwise noted. All statements contained in a
stockholder proposal and supporting statement are the sole responsibility of the proponent of that stockholder proposal. Our Company will provide the names, addresses and shareholdings (to our
knowledge) of the proponents of the stockholder proposal upon oral or written request made to the Secretary of the Company.

Our Board recommends that you vote "AGAINST" this proposal for the reasons set forth below.

WHEREAS: In its 2009-2010 Corporate Social Responsibility Report, Arch Coal stated that
"[i]n 2009 and 2010, Arch delivered its best environmental compliance years on record." and that it "adhere[s] to the requirements of the Clean Water
Act ... at all levels of our operations." However, Arch recently incurred considerable legal liability and economic loss due to water pollution associated with its Appalachian mining, including
mountaintop mining.

In
2011, Arch agreed to pay $6 million to settle suits brought by the U.S. Environmental Protection Agency (EPA) and the states of West Virginia and Kentucky, and by conservation organizations,
for water pollution violations at several of Arch's Appalachian mines. The violations included selenium discharges over twice the allowable limits and discharges of aluminum and total suspended solids
at concentrations over 20 times above allowable limits. In late 2010, International Coal Group (ICG), Inc., recently acquired by Arch, agreed to pay a total of $752,450 to settle two cases
alleging water pollution violations at Appalachian surface mines.

In
January 2011, EPA vetoed the Clean Water Act permit for Arch's 2,300-acre Spruce No. 1 Mine in West Virginia because the mountaintop mining would bury 6.6 miles of
high-quality headwater streams, causing "unacceptable adverse effects on wildlife."

Mountaintop
mining, which involves depositing rock and soil in valleys, frequently burying streams, "causes permanent loss of ecosystems that play critical roles in ecological processes such as
nutrient cycling and production of organic matter for downstream food webs." (Science 327:148, 2010). Streams affected by mountaintop mining contain
pollutants in concentrations dangerous to fish, birds, and humans. Mountaintop mining increases the frequency and intensity of flooding and the amount of runoff.

Mountaintop
mining communities have increased rates of birth defects, cardiovascular disease mortality, and self-reported cancer, as well as an overall reduction in health-related quality
of life.

Having
recognized the significant environmental concerns and increasing regulatory scrutiny associated with mountaintop mining, several major U.S. and European banks have decided to cease financing
companies whose primary coal extractions method is mountaintop mining.

In
its 2009-2010 Corporate Social Responsibility Report, Arch Coal used Global Reporting Initiative (GRI) guidelines to report its
environmental impacts. However, the information Arch presented was partial and not verified by GRI.

Resolved: Shareholders request a report, prepared at reasonable cost within six months after the 2012 annual meeting, omitting confidential information,
on the company's efforts to reduce environmental and health hazards associated with its Appalachian mining operations, and how those efforts may reduce legal, reputational and other risks to the
company's finances. The report should include complete, detailed information for these GRI performance indicators:



Total water withdrawal by source.



Water sources significantly affected by withdrawal of water.



Percentage and total volume of water recycled and reused.



Total water discharge by quality and destination.



Total weight of waste by type and disposal method.



Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by
the reporting organization's discharges of water and runoff.

ARCH'S STATEMENT IN OPPOSITION TO PROXY ITEM NO. 4

While Arch recognizes the importance of environmental issues such as the ones raised in the proposal and the public interest in
environmental matters associated with coal companies in general, the Board believes that it would be inappropriate for Arch to engage in the requested study at this time for a variety of reasons,
including those set forth below.

Preparing the Requested Report Would Be Overly Burdensome and an Inefficient Use of Company Resources

The stockholder proposal requests a report on the Company's efforts to reduce environmental and health hazards associated with its
Appalachian mining operations, specifically addressing certain GRI performance indicators related to water usage and water and waste disposal. The primary reason the proponents are requesting
additional reporting is certain surface mining activity in the Appalachian region. Particularly, the proponents cite the recent veto by the Environmental Protection Agency ("EPA") of the Clean Water
Act Section 404 permit for our 2,300-acre Spruce No. 1 Mine in West Virginia, as well as make statements regarding communities located around mountaintop removal mines.

We
believe that the requested additional reporting would be overly burdensome and would represent an inefficient use of the Company's resources. Out of 46 mines in Arch's 23 active
mining complexes, only 13 mines, located in seven of the mining complexes, are Appalachian surface mining operations, and none of them are mountaintop mining operations as that term is defined in the
Surface Mining Control and Reclamation Act ("SMCRA") and regulations promulgated pursuant to SMCRA.

Furthermore,
a majority of the information that the proponents are requesting, namely information related to water withdrawal and use, is not applicable in surface mining operations. In
surface mining operations, water is typically not withdrawn from streams or used in the mining process. Water is encountered through natural precipitation events, but it is simply collected and
discharged to streams in a manner that prevents sedimentation.

In
addition, the mine that the proponents specifically mention in their proposal, the proposed 2,300-acre Spruce No. 1 Mine in West Virginia, is not currently in
operation because of the
EPA's unprecedented action. The EPA and the public as a whole had significant input during the approval process for the Spruce permit, and, notwithstanding this high level of collaboration during the
approval process, the EPA subsequently vetoed the permit after it had already been issued. The Spruce permit was one of the most scrutinized and fully considered permits in West Virginia's history,
and the 13-year permitting process included the preparation of a full environmental impact statement, the only permit in the eastern coal fields to ever undergo such a review. While we
continue to pursue our legal actions against the EPA in this matter, as we have indicated previously, we do not believe that the EPA's veto of this permit currently has a material impact on the
operation of our business.

The
Board and our management believe that they are in the best position to determine how Company resources should be deployed toward addressing these matters. The engagement of a third
party to undertake the requested report, when it is based on a type of mining operation that is not utilized by a majority of our mining complexes, and at mines located in a limited geographic area,
is overly burdensome on the Company and would significantly increase administrative costs and divert Company resources from our more relevant and meaningful health and environmental concerns, as
determined by those closest to and most knowledgeable about our business. Further, preparing a report covering the requested information would require analysis of day-to-day
management decisions, strategies and plans implemented at various local levels which, individually, often are not material to Arch on a consolidated basis.

As a natural resource company, we take seriously our commitment to environmental stewardship and social responsibility to our
stakeholders, including the communities in which we operate. Our commitment to the environment is described under our "Environment" tab on our website, archcoal.com, and is further expanded upon in
our 2009-2010 Corporate Social Responsibility Report, published in September 2011, which stockholders can view on our website or obtain a copy in print form by sending a written request to
our Company's Secretary. In this report, we outline the increased Company-wide water, oil and metal recycling, as well as discuss efforts underway to reduce airborne emissions, advance
technology to address global greenhouse gas emissions, and protect and enhance water resources. As we state in the Corporate Social Responsibility Report, "Our charge is to carefully balance economic
progress and social responsibility. That's why we go beyond supplying affordable and increasingly clean energy to people around the world... By respecting the environment, we strive to be good
neighbors."

In
addition, in our Form 10-K for the fiscal year ended December 31, 2011, under the "Environmental and Other Regulatory Matters" heading, we outline the steps
we must take to ensure compliance with various water, air and other environmental regulations. As we describe in the Form 10-K, during the permitting process for each mining
operation, there are public notice and comment periods, whereby the general public is able to review and provide input on the mining operations related to such permits. In fact, as described above,
the Spruce permit mentioned by the proponent had a 13-year permitting process, and included a full environmental impact statement.

Finally,
under the Clean Water Act and corresponding state regulations, we are already required to report specific water discharge information. This information is collected by each
state and is made available to the public by each state. In addition, the EPA has recently begun compiling this information and has created a publicly available, searchable database, the Discharge
Monitoring Report (DMR) Pollutant Loading Tool located at http://cfpub.epa.gov/dmr/ez_search.cfm, where anyone can view water discharge information from the Company's operations.

As
a result, in accordance with applicable laws and regulations, we already include material information about the environmental impact of our operations in our public filings with the
SEC and the EPA and in our public reports to other applicable federal, state and local agencies. Requiring us to provide information at an even greater level of detail regarding a separate limited
subset of our mining operations would result in our stockholders receiving a report that necessarily would be lengthy given the scope of the information requested in the stockholder proposal, while
all information material to Arch on a consolidated basis already appears in our publicly available reports pursuant to applicable laws and regulations.

Arch Has Demonstrated a Strong Commitment to Environmental Issues at the Highest Levels of Its Management

Across a variety of materials published by Arch, including in our Corporate Social Responsibility Report, our website, our most recent
Form 10-K, and other materials, we emphasize our strong focus on achieving "A Perfect Zero." This means zero environmental violations and zero safety incidents across all of our
operations and regions, the ultimate standard to which our management and Board holds each subsidiary operation.

Our
commitment to this goal at the highest level is evidenced by several items, including our Board's creation of an Energy and Environmental Policy Committee, which focuses on
Company-wide environmental efforts. In addition, our efforts in environmental compliance have been recognized within our industry. In 2011, Arch's environmental compliance rate was again
the best among its major coal industry peers. In 2011 and 2010, 17 and 11 of our mines and facilities achieved zero SMCRA environmental violations, respectively. Beyond just compliance, we have
received a number of national and statewide awards based on our proactive efforts. For example, our Coal-Mac mining and preparation complex in Holden, West Virginia received the Greenland
Award in 2011, West Virginia's top environmental honor for outstanding environmental performance and achievement in surface mine reclamation. The same mining and preparation complex received a 2010
National Award for Excellence in Surface Mining from the U.S. Department of the Interior.

The Board recommends a vote "AGAINST" this stockholder proposal, if it is properly presented at the Annual
Meeting.

OTHER MATTERS

The Company knows of no other matters to be submitted to the stockholders at the Annual Meeting. If any other matters properly come
before the stockholders at the Annual Meeting, it is the intention of the persons named on the proxy to vote the shares represented thereby on such matters in accordance with their best judgment.

EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

This Compensation Discussion and Analysis describes the material elements of compensation to each of the following named executive
officers of Arch Coal, Inc. (the "named executive officers" or "NEOs"), for fiscal year 2011:

Name

Title

Steven F. Leer

Chairman and Chief Executive Officer

John T. Drexler

Senior Vice President and Chief Financial Officer

John W. Eaves

President, Chief Operating Officer and Director

Paul A. Lang

Executive Vice President  Operations

David N. Warnecke

Senior Vice President  Marketing and Trading

Overview

We believe that our success in creating long-term value for our stockholders depends on our ability to closely align the
interests of our named executive officers with the interests of our stockholders. Our compensation programs are designed to attract, motivate and retain highly talented executives. We encourage
sustained long-term profitability and increased stockholder value by linking named executive officer compensation to our achievement of financial and operating performance. We use
equity-based awards and other mechanisms to align the long-term interests of our named executive officers with those of our stockholders. For 2011, each NEO had 60% or more of their total
target compensation in long-term performance based awards. We have designed elements of our compensation program to increase the likelihood that we will retain key employees.

We
have determined the type and amount of compensation for each NEO after considering a variety of factors, including the executive's position and level of responsibility within our
organization, comparative market data and other external market-based factors. Our Personnel and Compensation Committee (the "Committee") uses this information when establishing compensation in order
to achieve a comprehensive

package
that emphasizes pay-for-performance and is competitive in the marketplace. For the 2011 fiscal year, the Committee designed a compensation package for each NEO weighted
as follows:

% of Target 2011 Compensation

Fixed

Performance-
Based

Base
Salary

Annual

Long-
Term

Steven F. Leer

18

%

20

%

62

%

John T. Drexler

22

%

18

%

60

%

John W. Eaves

18

%

17

%

65

%

Paul A. Lang(1)

22

%

18

%

60

%

David N. Warnecke

23

%

14

%

63

%

(1)

Mr. Lang
was promoted to Executive Vice President  Operations in August 2011 and his salary and annual incentive opportunity were
adjusted at that time. The percentage amounts in this table reflect the percentages after taking into account his compensation adjustment.

Acquisition of International Coal Group, Inc.

In February 2011, the Board established target levels for the Company's annual incentive plan and long-term incentive plan,
consistent with the approach for target levels under these plans in prior calendar years. On June 15, 2011, we completed the acquisition of International Coal Group, Inc. (ICG). This
transaction resulted in the increase in the total number of our mining complexes from 11 to 23, an addition of approximately 2,400 employees, and the potential to significantly increase our earnings
over pre-merger levels. As a result, the target levels set by the Board in February 2011 for the annual incentive plan and long-term incentive plan no longer were appropriate
for a substantially larger Company.

In
addition, ICG paid to its employees amounts under its annual incentive plan for the period beginning on January 1, 2011 through June 15, 2011, and, as part of the
agreement with ICG, the Company was required to include the ICG employees that were hired by Arch in its annual incentive plan for the remainder of 2011.

In
order to align the annual incentive compensation plan with the larger company, and to treat all employees equally for the second-half of 2011, the Board decided to measure
the Company's performance for the six-month period ending June 30, 2011 using partial year target levels that were based on the initial pre-acquisition 2011 metrics and
determine a pro-rated payout for covered employees, including our NEOs based on actual performance through June 30, 2011. The Board then set separate post-acquisition
incentive target levels for all covered employees, including our NEOs, for the second half of 2011. As a result, under the "Annual Cash Incentive Program" heading below, you will see performance
measures and payout percentages related to both the first and second halves of 2011. By splitting the plan year in two parts, it helped integrate the new employees and aligned all executives with the
same goals.

In
addition to the change in the Company's treatment of the annual incentive compensation plan, the Board restated the performance measures for the long-term incentive plan
grants that were made in 2011.

The
new targets are more appropriate for the company following the acquisition of ICG. As a result, under the "Long-Term Incentive Program" heading below, you will see the restated
performance levels for grants made in 2011. No payouts were made on the initial measures approved by the Board at the beginning of 2011.

Our Compensation Process

The Committee uses current compensation levels, performance, long-term career goals, future leadership potential and
succession planning, among other factors, in determining appropriate compensation levels for our NEOs. The Committee does not use a formula to weight these factors. However, the Committee believes
these factors provide context within
which to assess the significance of comparative market data and to differentiate the level of compensation among our NEOs.

Annually,
the Committee reviews the design of our named executive officer compensation program, including whether the risks arising from our compensation policies and practices are
reasonably likely to have a material adverse effect on us. In doing so, the Committee assesses whether compensation programs used in prior years have successfully achieved our compensation objectives.
The Committee also considers the extent to which our compensation program is designed to achieve our long-term financial and operating goals. The Committee has retained the consultant
listed below under "Role of Compensation Consultants" to help analyze certain comparative market data. Certain members of management participate in this process by assembling and summarizing data used
by the Committee. The Committee and its compensation consultant reviewed our compensation policies and practices, and has determined that the risks arising from our compensation policies and practices
are not reasonably likely to have a material adverse effect on us.

After
the end of the performance period to which a particular incentive award relates, the Committee reviews our performance relative to the applicable performance targets and recommends
payouts based on that performance. The Committee retains discretion to recommend payouts that are above or below actual performance levels for the applicable performance period. For purposes of
determining the amount of a payout to recommend, the Committee may also consider infrequent or non-recurring items that are not reflective of ongoing operations or the effects of major
corporate transactions or other items that the Committee determines, in its judgment, significantly distort the comparability of our actual performance against the performance targets.

Role of Compensation Consultants

During 2011, the Committee retained Meridian Compensation Partners, LLC ("Meridian") to provide the Committee advice on executive
compensation matters. Meridian assisted the Committee in the development of a compensation peer group, which is described in more detail below. Meridian also advised the Committee on competitive
compensation practices, mix of compensation elements and comparative market data, which the Committee considered in addressing and determining the appropriate levels of compensation for each NEO
relative to the marketplace.

Our chief executive officer and vice president of human resources receive compensation peer group information from our compensation
consultant, and then provide the Committee with compensation recommendations for our NEOs, other than the chief executive officer, including base salary, annual cash incentive opportunity and
long-term incentive opportunities. Management provides a current market value for each proposed element and for the total targeted value, as well as the median and other select percentile
market values for the named executive officers' peers. Management obtains the comparative market information primarily from materials provided by our compensation consultant. Our chief executive
officer does not recommend his own base salary or target or actual payout amounts under our annual or long-term incentive awards.

Annually,
the Committee reviews the performance of our chief executive officer and makes recommendations to the Board regarding his compensation. In doing so, the Committee uses
information provided by our compensation consultant and certain historical financial and operating performance data provided by management. Historically, the Committee has not considered accrued
pension benefits, deferred compensation, 401(k) savings plan amounts or existing stock ownership in making its recommendations. The Committee believes that the compensation opportunities granted to
our chief executive officer, while higher in the aggregate than compensation granted to our other executives, is appropriate taking into consideration our chief executive officer's overall leadership
responsibilities.

Compensation Peer Group

For the 2011 compensation program, the Committee evaluated and defined an appropriate the peer group. Based on the uniqueness of the
mining industry and the limited number of direct peer companies available, the Committee approved the use of three compensation peer groups to be reviewed together. The primary peer group, the
Coal/Mining Peer Group, consisted of companies within the coal/mining industry. These companies were selected because they are the most direct competitors for industry talent. The median revenues of
this group was $1.8 billion. The Coal/Mining Peer Group consisted of the following companies:

Alliance Resource Partners, L.P.

Massey Energy Company

Alpha Natural Resources, Inc.

Minerals Technologies, Inc.

Cliffs Natural Resources, Inc.

Natural Resource Partners L.P.

Cloud Peak Energy, Inc.

Patriot Coal Corporation

CONSOL Energy, Inc.

Peabody Energy Corporation

International Coal Group, Inc.

Vulcan Materials Company

Martin Marietta Materials

Walter Energy, Inc.

The second group, the Energy Peer Group, was used to provide additional benchmarking data to the Committee. This group was selected by narrowing
the Energy and Utilities GICS codes to companies

within
a relevant revenue range compared to Arch. The median revenues of this peer group was $3.3 billion. The Energy Peer Group consisted of the following companies:

AGL Resources, Inc.

Noble Energy, Inc.

ALON USA Energy, Inc.

Pioneer Natural Resources Company

Ameren Corporation

PNM Resources, Inc.

Cameron International Corporation

Pride International

Diamond Offshore Drilling, Inc.

Questar Corporation

DTE Energy Company

Sempra Energy

El Paso Corporation

Southern Union Company

Frontier Oil Corporation

Southwestern Energy Company

Lastly, general industry compensation data was reviewed by the Committee to provide an additional reference point. This data was based on public
companies (excluding financial services companies) that had median revenues similar to Arch.

The
Committee assesses the appropriateness of the peer group used to benchmark our compensation programs on an annual basis and adds or subtracts members of the peer group as
appropriate.

Evaluation of Stockholder "Say on Pay" Vote Results

When establishing or modifying our compensation programs and arrangements for 2011 and our ongoing compensation philosophies and
practices, the Committee took into
account the results of the stockholder advisory vote on executive compensation, or "say on pay" vote, that occurred at our annual meeting in 2011. In that vote, approximately 93% of the votes cast
approved our compensation programs and policies. The Committee believes that the strong support from our stockholders for the 2011 say on pay vote is evidence that the Company's stockholders overall
believe that our pay-for-performance policies are working and that those policies are aligned with our stockholders' interests.

Elements of Our Compensation Program

We use the following compensation elements to achieve the compensation objectives established by the
Committee:



base salary;



short- and long-term incentive opportunities; and



certain limited perquisites and other benefits.

The
Committee believes that a higher percentage of total compensation for those executives with a greater ability to influence the achievement of our financial and operating objectives
should be variable and, therefore, subject to greater risk. In general, as the position and amount of responsibility for an executive increases, a greater percentage of that executive's total
compensation will be variable. Executives with the highest level and amount of responsibility generally have the lowest percentage of their total compensation

fixed
as base salary and the highest percentage of their total compensation dependent upon our performance, as reflected in short- or long-term incentive awards.

The
following table shows the allocation of total targeted compensation for each NEO for each of the last three years:

% of Target 2009
Compensation(1)

% of Target 2010
Compensation(1)

% of Target 2011
Compensation(1)

Fixed

Performance-
Based(2)

Fixed

Performance-
Based(2)

Fixed

Performance-
Based(2)

Base
Salary

Annual

Long-
Term

Base
Salary

Annual

Long-
Term

Base
Salary

Annual

Long-
Term

Steven F. Leer

18

%

18

%

64

%

18

%

18

%

64

%

18

%

20

%

62

%

John T. Drexler

23

%

14

%

63

%

23

%

14

%

63

%

22

%

18

%

60

%

John W. Eaves

19

%

15

%

66

%

19

%

15

%

66

%

18

%

17

%

65

%

Paul A. Lang(3)

23

%

14

%

63

%

23

%

14

%

63

%

22

%

18

%

60

%

David N. Warnecke

23

%

14

%

63

%

23

%

14

%

63

%

23

%

14

%

63

%

(1)

For
purposes of determining total compensation, we have included base salary, targeted annual cash incentives and the value of targeted
long-term incentive awards. We have not considered the increased value of other compensation elements such as pension plans, nor have we assigned cash values to perquisites.

(2)

In
determining the percentages shown above, the annual cash incentives and the long-term incentive awards are assumed to be paid at target
levels.

(3)

Mr. Lang
was promoted to Executive Vice President  Operations in August 2011 and his salary and annual incentive opportunity were
adjusted at that time. The percentage amounts in this table reflect the percentages after taking into account his compensation adjustment.

Base Salary  We provide each named executive officer with an annual base salary. Base salaries for our named executive officers
depend on the executives' experience and scope of responsibilities as well as the median market data for comparable job positions. We increase base salary primarily in response to notable achievements
or for changes in scope of responsibilities. In addition, we may increase base salary to remain competitive in the marketplace.

Upon
the recommendation of the Committee, the Board did not approve any increases in annual base salaries for our executives in 2010. At the beginning of 2011, upon the recommendation of
the Committee, the Board approved increases in the annual base salaries for our named executives officers. It was determined that this increase was appropriate in order to align our named executive
officer base salaries with comparable job positions at companies in our peer group. In making its recommendations, the Committee considered market data provided to the Committee by our compensation
consultant.

Annual Cash Incentive Program  The Committee intends for our annual cash incentive program to focus our organization on meeting
certain financial and operating objectives by rewarding those key employees with the greatest ability to influence our results.

Early
each year the Committee considers whether annual cash incentives should be awarded. If so, the Committee recommends to the board of directors the group of employees eligible to
receive an award for

that
year. Annual cash incentive awards contain various incentive levels based on the participant's accountability and impact on our performance, with target opportunities established as a percentage
of base salary.

The
following table shows the target opportunities available to the NEOs as a percentage of their base salaries and the actual payouts as a percentage of their base salaries each of the
last three years:

2009

2010

2011

Name

Target as % of
Base Salary

Actual Payout
as % of Base
Salary

Target as % of
Base Salary

Actual Payout
as % of Base
Salary

Target as % of
Base Salary

Actual Payout
as % of Base
Salary

Steven F. Leer

100

%

74

%

100

%

170

%

110

%

120

%

John T. Drexler

60

%

44

%

60

%

102

%

80

%

87

%

John W. Eaves

80

%

59

%

80

%

136

%

90

%

98

%

Paul A. Lang

60

%

67

%

60

%

102

%

80

%

83

%

David N. Warnecke

60

%

44

%

60

%

102

%

60

%

66

%

Payouts under our annual cash incentive program depend upon our earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA),
earnings per share, safety and environmental performance and, for some employees, our production costs per ton. Some or all of these performance measures may be used for our other employees, and the
performance measures may differ for various groups or classifications of
employees. By identifying meaningful performance measures and by assigning certain measures greater weight, we are able to more closely align compensation to the achievement of those business
objectives over which particular employees have the greatest impact.

We
generally establish the financial performance levels based on budgeted earnings for the upcoming year, and the target levels are generally consistent with the range of earnings that
we provide to investors. We generally establish safety and environmental performance targets based on our prior performance history with the objective of promoting improvements in those areas. In
order to inspire performance above the targets we set and to acknowledge certain levels of performance below those targets, annual cash incentive awards contain threshold, target and maximum levels
for each performance measure. Payouts under the awards depend upon the achievement of our objectives.

If
the target level of performance is achieved with respect to a particular performance measure, the applicable payout percentage for that performance measure will equal 100%.
Achievement at the threshold or maximum performance level results in an applicable payout percentage that varies based on the performance measure, as shown in the table below. We may prorate payouts
under the annual cash incentive awards

for
performance levels that fall between the threshold, target and maximum performance levels. In addition, payments made in 2011 were prorated based on goals being determined for half year targets.

Performance Measure

Threshold

Target

Maximum

Adjusted EBITDA

25

%

100

%

200

%

Earnings per share

25

%

100

%

200

%

Safety

50

%

100

%

225

%

Environmental

50

%

100

%

225

%

Production costs per ton

25

%

100

%

200

%

As previously disclosed above, the 2011 calendar year was unique in that we completed a major acquisition in the middle of the year. As a result,
the performance metrics were evaluated at mid-year to pay out awards under the incentive plan based on first half results, and the Board set new post-acquisition target levels
for the second half of 2011. After including the former ICG employees we hired as part of our acquisition of ICG, we provided approximately 900 key employees, including the executives named in this
proxy statement, the opportunity to earn additional cash compensation through annual cash incentive awards based on Arch's performance during 2011.

The
following table shows the relative weighting of the performance measures and the threshold, target and maximum levels of performance used for annual incentive awards paid to the NEOs
for the first six months of the 2011 fiscal year:

Performance Goals

Relative
Weighting(2)

Performance Measure(1)

Threshold(3)

Target

Maximum(3)

Adjusted EBITDA

50

%

$

278,543,000

$

371,400,000

$

427,100,000

Earnings per share

20

%

$

0.45

$

0.60

$

0.72

Safety

15

%

1.42

1.35

1.28

Environmental

15

%

9 NOVs

7.33 NOVs

6 NOVs

Production costs per ton



$

13.87

$

13.47

$

12.93

(1)

The
performance measures are defined and evaluated based on the following:



"Adjusted EBITDA" is determined based on our earnings before interest, taxes,
depreciation and amortization, determined on a consolidated basis in accordance with generally accepted accounting principles;



"Earnings per share" is determined based on our earnings per share of our common
stock outstanding, determined on a consolidated basis in accordance with generally accepted accounting principles;



"Safety" is determined based on our historical performance, and is the number of
reportable injuries per 200,000 man hours;



"Environmental" is determined based on our historical performance, and NOVs, or
Notices of Violation, are determined based on the number of actual Notices of Violation received by the Company and its subsidiaries; and



"Production costs per ton" is determined based on budgeted per ton operating cost
excluding taxes, royalties, depletion and change in inventory, etc.

The
relative weighting reflected in the table above applies to the NEOs other than Paul A. Lang. With respect to Mr. Lang, the relative
weighting is as follows: Adjusted EBIDTA  40%; Earnings per share  10%; Safety  15%; Environmental  15% and Production
cost per ton  20%.

(3)

The
above-referenced levels are based on the previously approved full year 2011 amounts, adjusted for six-month results consistent with the
adjustments made to the target performance levels.

In July 2011, the Committee evaluated the level of achievement of the various performance measures set forth above for the first six months of
2011 and awarded payouts (pro-rated based on achievement of the performance goals for only half of the 2011 calendar year) based on the performance as indicated below:

Performance Measure

Actual Performance

Applicable Payout
Percentage

Relative
Weighting(1)

Weighted Payout
Percentage

Adjusted EBITDA

$

422.9 million

192

%

50

%

96

%

Earnings per share

$

0.81

200

%

20

%

40

%

Safety

1.22

225

%

15

%

33.75

%

Environmental

8 NOVs

100

%

15

%

15

%

Production costs per ton

$

13.15

159

%





(1)

The
relative weighting reflected in the table above applies to the executives named in this proxy statement other than Paul A. Lang. With respect to
Mr. Lang, the relative weighting is as follows: Adjusted EBITDA  40%, Earnings per share  10%, Safety  15%,
Environmental  15% and Production costs per ton  20%.

The following table shows the relative weighting of the performance measures and the threshold, target and maximum levels of performance used for
annual incentive awards paid to the NEOs for the last six months of the 2011 fiscal year:

In early 2012, the Committee evaluated the level of achievement of the various performance measures for the last six months of 2011 and made the
following determinations (payouts under these goals were pro-rated based on achievement of the performance goals for only half of the 2011 calendar year):

Performance Measure

Actual Performance

Applicable Payout
Percentage

Relative
Weighting(1)

Weighted Payout
Percentage

Adjusted EBITDA

481,900,000

0

%

50

%

0

%

Earnings per share

$

0.38

0

%

20

%

0

%

Safety

1.75

0%

(2)

15

%

0

%

Environmental

20 NOVs

225

%

15

%

34

%

Production costs per ton

$

17.96

0%

(3)



0

%

(1)

The
relative weighting reflected in the table above applies to the executives named in this proxy statement other than Paul A. Lang. With respect to
Mr. Lang, the relative weighting is as follows: Adjusted EBITDA  40%, Earnings per share  10%, Safety  15%,
Environmental  15% and Production costs per ton  20%.

(2)

Payout
under Safety was 0% due to a fatality at one of our mines in 2011.

(3)

Payout
under production costs per ton was 0% because, per plan design, if Adjusted EBITDA is below the threshold level, there is no payout under the
production cost per ton performance measure.

Based on the actual performance as set forth above, the following cumulative amounts of payouts were made under the annual cash incentive plan for
the Company's 2011 performance:

Name

Target as % of
Base Salary

Actual Payout
as % of Base
Salary

Dollar Amount
of Payout

Steven F. Leer

110

%

120

%

$

1,171,706

John T. Drexler

80

%

87

%

393,300

John W. Eaves

90

%

98

%

624,364

Paul A. Lang

80

%

83

%

403,969

David N. Warnecke

60

%

66

%

262,200

Long-Term Incentive Program  Our long-term incentive program is designed to achieve the compensation
objectives established by the Committee. The Committee intends for our long-term incentive program to promote decision-making that creates long-term value for our stockholders.
The Committee believes that an effective long-term incentive program should also create strong retention incentives for those key employees who are most likely to influence our
long-term performance. In addition, we attempt to align the long-term interests of our executives with those of our stockholders by tying a portion of total compensation to
appreciation in the value of our common stock.

The
Committee has retained flexibility in the types of awards that it may use to implement our long-term incentive program. We have used performance units and
performance-contingent phantom stock in order to promote the achievement of our long-term financial and operating performance objectives. In addition, we have used restricted stock,
restricted stock units, stock options and other awards tied to the value of our common stock in order to align the long-term interests of our executives and our stockholders and for
retention purposes. In determining the aggregate value of long-term awards and the mix of those awards for our executives, the Committee considers the executives' scope of responsibility,
peer group market data, market competition for the particular position, relative internal equity and leadership continuity.

The following table shows the types of awards that we have included as a component of our long-term incentive program for each of the last three years
and for 2012, and the percentage of targeted long-term compensation associated with each award:

Compensation Objective

2009

2010

2011

2012

Performance units

50

%

50

%

20

%

30

%

Restricted stock/restricted stock units





20

%

35

%

Stock options

50

%

50

%

60

%

35

%

The following is a description of each of these types of awards and the performance or vesting provisions included in the 2011 awards:

Performance Units  We use performance units as a component of our long-term incentive program in order to motivate
our NEOs and other key employees to focus on our financial and operating performance over a multi-year period. Performance units generally provide an opportunity for key employees to earn
compensation upon the successful achievement of our objectives over a three-year period. The Committee has also retained discretion to further align the long-term interests of
our stockholders and executives by providing that payouts under performance units may be in the form of cash, stock or a combination of the two.

Payouts
under the performance units granted will depend upon our achievement of certain safety and environmental objectives, and in some years relative total shareholder return, over a
three-year period. For 2011, the Board, upon the recommendation of the Committee, determined to use performance units for 20% of the value of the long-term incentive program.
The actual number of performance units granted to each NEO is set forth in the table under "Grants of Plan-Based Awards for the Year Ended December 31, 2011." Below is a table that
shows the target and maximum levels for performance units granted in 2011. No payout is made for results below the target level. Half of the performance units granted to each NEO is tied to the safety
performance and half of the performance units are tied to environmental performance.

Safety Incident Rate

Environmental

Payout Factor

Incident Rate

Payout Factor

Notices of Violation

Target (100%)

2.31

Target (100%)

75

Maximum (200%)

2.20

Maximum (200%)

70

Restricted Stock Units and Restricted Stock  We use restricted stock and restricted stock units as a component of our
long-term incentive program designed to align the long-term interests of our stockholders and our executives and for retention purposes. Restricted stock units and restricted
stock can provide a significant retention incentive since they have real, current value that an executive may forfeit if his or her employment terminates before the awards vest. In addition,
restricted stock units and restricted stock satisfy our compensation objectives by promoting long-term decision-making that results in appreciation in the value of our common stock.

When
awarded, we generally condition receipt of the common stock underlying these awards on the executive's continued employment. Restricted stock units and restricted stock usually all
vest at the end of a

specific
period, generally three or four years. In determining the conditions associated with these types of awards, the Committee considers the market competition for the executive's position, the
ability of the executive to influence our long-term financial and operating performance and succession planning. The Committee has retained discretion whether or not to consider the number
of shares of our common stock held by an executive in recommending subsequent awards of restricted stock units or restricted stock. The Board, upon the recommendation of the Committee, has awarded
restricted stock as a component of the long-term incentive plan for 2011. The actual number of shares of restricted stock granted to each NEO is set forth in the table under "Grants of
Plan-Based Awards for the Year Ended December 31, 2011." All restricted stock awards granted in 2011 were subject to a three-year cliff vesting schedule.

Stock Options  In 2011, the Board, upon the recommendation of the Committee, determined to use stock options as 60% of the value
of the long-term incentive program. The actual number of stock options granted to each NEO is set forth in the table under "Grants of Plan-Based Awards for the Year Ended
December 31, 2011." The stock options awarded in 2011 vest in one-third increments over the next three years. In making its recommendation, the Committee determined that
long-term stock price appreciation was reflective of our achievement of the long-term performance objectives established by our Board.

Stock
options represent the opportunity to buy shares of our common stock at a fixed price at a future date. Under the terms of our stock incentive plan, the exercise price of stock
options cannot be less than the fair market value of a share of our common stock on the date of grant. As such, stock options have value for our executives only if the price of our common stock
increases after the date of grant.

Our
policy is to issue stock options on the dates on which the awards are approved and to set the exercise prices of those awards equal to the closing market price of our common stock on
that date. In order to provide some retention incentive, our stock options vest over a stated period measured from the date of grant. Depending upon the strength of the retention incentive intended by
the Committee, stock options may vest over three or four years. As is typical, the stock options we grant expire after ten years, except in limited circumstances.

Perquisites and Other Benefits  We provide various perquisites and other benefits to our NEOs for a variety of different reasons,
including our intent to attract and retain executives with a comprehensive compensation package. Many of these perquisites and other benefits are not tied to any formal performance objectives. We
provide the following perquisites to our executives:

Financial, Estate and Tax Planning Services  We provide our NEOs with financial, estate and tax planning services in order to
assist them with the complexities of the various compensation arrangements that we maintain, retirement planning and compliance with our stock ownership guidelines.

Club Membership Dues  We provide a limited number of NEOs with memberships for country clubs. We intend for these club
memberships to provide access to facilities that our NEOs may use for more private business and business entertainment meetings.

Other Perquisites  We provide certain NEOs with a limited personal use of our corporate aircraft. For more information about
these perquisites, including the incremental cost to us for providing them, refer to the table included as a footnote to the Summary Compensation Table below.

The
above perquisites are taxable to the executives. Since 2010, executives do not receive any tax gross up payments on perquisites.

Participation in Benefit Plans and Other Compensation Arrangements  Each of our NEOs is eligible to participate in the same
health and welfare plans as our other eligible employees. These plans include medical and dental insurance, life, travel and accidental death and dismemberment insurance, short-and
long-term disability coverage and participation in our qualified defined benefit pension plan and qualified defined contribution plan. In addition, each of our NEOs is eligible to
participate in our supplemental retirement plan and non-qualified deferred compensation plan, and each of our NEOs is subject to an employment agreement.

The
following is a summary of certain benefit plans and other compensation arrangements available to our NEOs but for which our other employees may not be eligible:

Supplemental Retirement Plan Benefits  We sponsor a tax-qualified defined benefit plan covering all of our eligible
employees, including our executives. The Internal Revenue Code limits the amount of qualified retirement benefits we may provide for certain employees. As a result, we sponsor a supplemental
retirement plan that provides eligible employees, including the executives named in this proxy statement, with additional retirement benefits that would otherwise be available under our defined
benefit pension plan but for the limitations contained in the Internal Revenue Code. For more information about our defined benefit pension plan and our supplemental retirement plan, including the
accumulated benefits attributable to the executives named in this proxy statement, you should see "Pension Benefits" below.

Non-Qualified Deferred Compensation Plan  We sponsor a tax-qualified defined contribution plan covering
all of our eligible employees, including the NEOs. Under this plan, eligible employees, including the NEOs, may contribute up to 50% of their base salaries to the plan, subject to certain limitations
contained in the Internal Revenue Code. We contribute one dollar for each dollar contributed by our employees, up to a maximum of 6% of employees' base salaries. The Internal Revenue Code limits the
amount certain of our employees may contribute to our defined contribution plan in any tax year. As a result, we sponsor a non-qualified deferred compensation plan that allows eligible
employees, including the executives named in this proxy statement, to defer receipt of a portion of their base salaries and certain annual and long-term cash
incentive awards not subject to these limits. The deferred compensation plan provides higher-paid employees with the full company matching contribution to which they would otherwise be
entitled under our defined contribution plan but for the limitations contained in the Internal Revenue Code. For more information about our deferred compensation plan, including information about
amounts attributable to the executives named in this proxy statement, you should see "Non-Qualified Deferred Compensation" below.

Employment Agreements  In order to provide certain key employees, including the NEOs, with some financial security in the event
their employment with our organization is terminated without cause or under

certain
circumstances following a change of control, we provide those employees with employment agreements that provide for cash payments and certain other severance benefits upon a qualifying
termination. We believe that the employment agreements we maintain with our key employees provide a meaningful mechanism by which to retain those individuals who are most capable of affecting our
future performance. While employment agreements entered into before January 2010 provide a gross-up provision for certain excise taxes, in addition to other taxes, our Board, upon the
recommendation of the Committee, has established a policy that no tax gross up provision is to be included in any employment agreement entered into after January 1, 2010. For more information
about the employment agreements with the executives named in this proxy statement, you should see "Potential Payments Upon Termination of Employment or Change-in-Control"
below.

Stock Ownership Guidelines  Our Board has adopted stock ownership guidelines that are intended to promote meaningful stock
ownership by our executives. These guidelines specify a number of shares of our common stock, including unvested restricted stock, unvested restricted stock units, shares held through our qualified
defined contribution plan and hypothetical shares of our common stock held through our non-qualified deferred compensation plan, that our executives must accumulate within
five years of becoming an executive officer of the Company. The specific share holding guidelines are determined based on a multiple of base salary ranging from one to three times, with the higher
multiples applicable to the executives having the highest levels of responsibility. As of December 31, 2011, each of the NEOs satisfied the stock ownership goal adopted by the Board.

Impact of Tax Considerations on Compensation

The Internal Revenue Code limits the amount of the tax deduction we are entitled to take for compensation paid to the executives named
in this proxy statement for a particular year unless the compensation meets specific standards. We may deduct compensation in excess of $1 million if compensation is "performance-based" and is
paid pursuant to a plan that meets certain requirements. In developing, implementing and administering our executive compensation program, the Committee considers the impact of these limits and
balances the desire to maximize the deductibility of compensation with the goal of attracting, motivating and retaining highly-talented executives.

We
generally seek to maximize the tax deductibility of all elements of compensation. However, in light of the need to maintain flexibility in administering our executive compensation
program, the Committee retains discretion to recommend to the board of directors compensation in excess of the limits, even if a portion of it may not be deductible.

The following table is a summary of compensation information for our chief executive officer, our chief financial officer and each of
the other three most highly compensated executives for each of the last three years:

Amounts
shown include amounts that the executives named in this proxy statement elected to defer, on a discretionary basis, pursuant to our deferred
compensation plan.

(2)

Amounts
shown represent the aggregate grant date fair value of all stock or stock option awards, as applicable, made to each executive during the year
indicated. We have determined the grant date fair value in accordance with FASB ASC Topic 718 (formerly referred to as Statement of Financial Accounting Standards No. 123R, Share-Based Payment). The determination of the grant date fair value is subject to certain estimates and assumptions described in Note 16 to our
consolidated financial statements for the year ended December 31, 2011 and under the heading "Stock-Based Compensation" in the section entitled "Critical Accounting Policies" included in our
Annual Report on Form 10-K for the year ended December 31, 2011. Amounts shown do not necessarily represent the actual value that may ultimately be received by the
executives.

Performance
unit awards represent payout of performance unit awards granted in 2009 for the 2009-2011 period under Arch's long term incentive
program. Half of these awards were tied to a safety performance measure and half were tied to an environmental performance measure. Below is a table that lists the performance measure, the target and
maximum thresholds for each performance measure and the actual performance for each performance measure.

Performance Measure

Target

Maximum

Actual Performance

Safety Incident Rate

1.78

1.69

1.22

Environmental

13 NOVs

12 NOVs

10 NOVs

Performance
units awards tied to a total shareholder return were also granted in 2009, but no payouts were made pursuant to those awards.

Amounts
shown include amounts that a NEO elected to defer, on a discretionary basis, pursuant to our deferred compensation plan.

(4)

Amounts
shown represent the changes in the actuarial present value of the accumulated benefits for the executives named in this proxy statement under our
defined benefit pension plans, including our supplemental retirement plan, computed in accordance with FASB ASC Topic 715 (formerly referred to as Statement of Financial Accounting Standards
No. 87, Employer's Accounting for Pensions). The present value of accumulated benefits is subject to certain actuarial assumptions described in
Note 14 to our consolidated financial statements for the year ended December 31, 2011 and under the heading "Employee Benefit Plans" in the section entitled "Critical Accounting
Policies" included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Other
items shown in the table above include personal use of corporate aircraft and a matching contribution to an institution of higher education in 2011 for
Mr. Leer. For 2011 we determined the aggregate incremental cost of the personal use of corporate aircraft by reference to a cost-per-flight-hour charge
developed by a nationally-recognized and independent service. The cost-per-flight-hour charge reflects the direct operating cost of the aircraft, including fuel,
aircraft landing and parking, as well as an allocable allowance for maintenance and engine restoration. Fixed costs that do not change based on usage, such as pilot salaries, depreciation and
insurance are not included.

**

Represents
reimbursement in 2010 for tax preparation services performed in 2009.

(6)

Represents
one-time special retention awards granted in 2009, which will vest in 2013.

The following table shows information relating to the grants of certain equity and non-equity awards made to the NEOs
during 2011:

Estimated Future Payouts Under
Non-Equity Incentive Plan Awards

All Other
Stock Awards:
Number of
Shares of
Stock or
Units
(#)

All Other
Option Awards:
Number of
Securities
Underlying
Options
(#)(1)

Exercise or
Base Price
of Option
Awards
($/Sh)

Grant Date
Fair Value
of Stock and
Option
Awards(2)

Name

Grant
Date

Threshold
($)

Target
($)

Maximum
($)

Steven F. Leer

2/24/2011

(3)

$

80,438

$

1,072,500

$

2,225,438

2/24/2011

20,400

$

662,796

2/24/2011

130,200

$

32.49

1,871,521

2/24/2011

(4)

341,250

682,500

1,365,000

John T. Drexler

2/24/2011

(3)

27,000

360,000

747,000

2/24/2011

7,400

240,426

2/24/2011

47,250

32.49

669,741

2/24/2011

(4)

123,750

247,500

495,000

John W. Eaves

2/24/2011

(3)

42,863

571,500

1,185,863

2/24/2011

13,300

432,117

2/24/2011

84,800

32.49

1,201,991

2/24/2011

(4)

222,500

444,500

889,000

Paul A. Lang

2/24/2011

(3)

29,145

388,603

806,531

2/24/2011

7,850

255,047

2/24/2011

49,850

32.49

706,595

2/24/2011

(4)

130,625

261,250

522,500

David N. Warnecke

2/24/2011

(3)

18,000

240,000

498,000

2/24/2011

6,600

214,434

2/24/2011

42,000

32.49

595,759

2/24/2011

(4)

110,000

220,000

440,000

(1)

Amounts
represent the number of stock options we granted to the NEOs during 2011. Refer to the information under the heading "Elements of Our Compensation
Program" in the sub-section entitled "Compensation Discussion and Analysis" for more information about our stock option awards.

(2)

Amounts
represent the grant date fair value of restricted stock, restricted stock units or stock options we awarded to the NEOs for 2011 determined in
accordance with FASB ASC Topic 718 (formerly referred to as Statement of Financial Accounting Standards No. 123R, Share-Based Payment). The
determination of grant date fair value is subject to certain estimates and assumptions described in Note 16 to our consolidated financial statements for the year ended December 31, 2011
and under the heading "Stock-Based Compensation" in the section entitled "Critical Accounting Policies" included in our Annual Report on Form 10-K for the year ended
December 31, 2011.

(3)

Amounts
represent the potential amounts payable to each NEO under the annual cash incentive awards for 2011 assuming threshold, target and maximum levels of
performance. Amounts paid each NEO under our annual cash incentive awards for 2011 have been included under the column entitled "Non-Equity Incentive Plan Compensation" in the Summary
Compensation Table.

(4)

Amounts
represent the potential amounts payable in 2014 to each NEO under performance units awarded in 2011 assuming threshold, target and maximum levels of
performance for the 2011 - 2013 performance period. You should see the information under the heading "Elements of Our Compensation Program" in the sub-section
entitled "Compensation Discussion and Analysis" for more information about our performance unit awards.

Option Exercises and Stock Vested for the Year Ended December 31, 2011

The following table shows information relating to the exercise or vesting of certain equity awards previously made to the executives
named in this proxy statement during 2011.

Option Awards

Stock Awards

Name

Number of Shares
Acquired on
Exercise (#)

Value Realized on
Exercise ($)(1)

Number of Shares
Acquired on
Vesting (#)

Value Realized on
Vesting ($)(2)

Steven F. Leer



$



16,275

$

537,726.00

John T. Drexler

2,074

$

11,790.69



$



John W. Eaves

71,900

$

370,968.05

10,850

$

358,484.00

Paul A. Lang



$





$



David N. Warnecke



$



5,000

$

165,200.00

(1)

Amounts
shown represent the value realized upon exercise of outstanding stock options calculated by multiplying the number of shares acquired upon exercise
by the difference between the option exercise price and the fair market value of our common stock on the date of exercise.

(2)

Amounts
shown represent the value realized upon vesting of outstanding awards calculated by multiplying the number of shares that vested by the fair market
value of our common stock on the date of vesting.

Pension Benefits

Defined Benefit Pension Plan. We sponsor a defined benefit pension plan covering all of our eligible employees, including our NEOs.
Employees become
eligible to participate in the plan after working 1,000 hours. A cash balance account is established for each participant. Participants become vested in their cash balance accounts after
serving three years with us. Upon retirement or upon termination of employment following three years of service with us, participants or their beneficiaries may elect to receive benefits in a lump
sum, in installments over a period of time or at a later date. Under the terms of the plan, normal retirement occurs on the first day of the month following the date a participant turns 65.

We
credit each participant's cash balance account with an interest amount based on the U.S. Treasury rate, subject to an annual minimum rate of 4.25%. In addition, we may provide
transition credits to employees who participated in certain predecessor plans for a period up to the number of years of credited service with the predecessor plan, subject to certain maximum amounts
depending upon the particular plan. The transition contribution rates range from 1% to 4% of compensation, depending upon the participant's age at the end of the year. Annually, we also credit each
participant's cash balance account with an amount, reflected as a percentage of compensation, based on the participant's age at the end of the year. For purposes of determining the contribution
amount, compensation includes salary, regular wages, overtime pay, earned vacation pay, short-term incentive compensation payments and amounts contributed by the participant to a qualified
profit-sharing or cafeteria plan maintained by us, subject to certain limits imposed

under
the Code. The following table shows the percentages of compensation we contribute to each participant's account, based on the participant's age at the end of the year:

Age at End of Year

Contribution Rate
(% of Compensation)

Less than 30

3

%

30-39

4

%

40-44

5

%

45-49

6

%

50-54

7

%

55 and over

8

%

Supplemental Retirement Plan. We sponsor a supplemental retirement plan covering all of our eligible employees, including our NEOs,
whose retirement
benefits under our defined benefit pension plan are limited by the Code. Under our supplemental retirement plan, each eligible employee is entitled to receive a lump sum amount equal to the difference
between the amount that would have been paid under our defined benefit pension plan but for the limitations contained in the Code and the actual amount that the employee is entitled to receive under
our defined benefit pension plan after taking into account the limitations imposed by the Code. Subject to the limitations contained in the Code, benefits under the supplemental retirement plan will
be paid six months after termination.

The
following table shows information relating to the accumulated benefits to which the NEOs are entitled under our defined benefit pension plans at December 31, 2011:

Name

Plan Name

Number of Years
Credited Service
(#)(1)

Present Value of
Accumulated Benefit
($)(2)

Payments During
Last Fiscal Year
($)

Steven F. Leer

Arch Coal, Inc. Retirement Account Plan

31

1,558,811



Arch Coal, Inc. Supplemental Retirement Plan

31

2,043,394



John T. Drexler

Arch Coal, Inc. Retirement Account Plan

14

194,838



Arch Coal, Inc. Supplemental Retirement Plan

14

82,693



John W. Eaves

Arch Coal, Inc. Retirement Account Plan

29

1,125,067



Arch Coal, Inc. Supplemental Retirement Plan

29

212,024



Paul A. Lang

Arch Coal, Inc. Retirement Account Plan

27

676,151



Arch Coal, Inc. Supplemental Retirement Plan

27

175,400



David N. Warnecke

Arch Coal, Inc. Retirement Account Plan

28

897,735



Arch Coal, Inc. Supplemental Retirement Plan

28

120,926



(1)

Under
our defined benefit pension plans, certain executives named in this proxy statement have been credited with additional years of service attributable
to employment with one or more predecessor entities as follows: Mr. Leer  16 years, Mr. Eaves  15 years,
Mr. Lang  13 years and Mr. Warnecke  13 years. In addition to an annual credit to our defined benefit pension plans, Mr. Leer
and Mr. Lang receive a transition credit ranging from 1% to 4% of his compensation as a result of the additional years of service.

(2)

Amounts
shown for each named executive officer represent the actuarial present value of the named executive's accumulated benefit under our defined benefit
pension plans as of December 31, 2011, computed in accordance with FASB ASC Topic 715 (formerly known as Statement of Financial Accounting Standards No. 87, Employer's Accounting for Pensions). The present value of accumulated benefits is subject to certain actuarial assumptions described in Note 14 to
our consolidated financial statements for the year ended December 31, 2011 and under the heading "Employee Benefit Plans" in the section entitled "Critical Accounting Policies" included in our
Annual Report on Form 10-K for the year ended December 31, 2011.

We maintain a deferred compensation plan that allows an eligible employee to defer receipt of his or her base salary and/or annual
incentive payment until the date or dates elected by the participant. The amounts deferred are invested in cash accounts that mirror the gains and/or losses of a number of different investment funds,
including a hypothetical investment in shares of our common stock. The deferred compensation plan offers participants a wide-range of publicly-available investment funds, including
international, U.S. equity, bond and money market funds. These investment funds are substantively similar to the investment alternatives offered to participants of our defined contribution plan. The
plan does not offer any above-market rates of return to any of our NEOs.

Participants
in the plan may defer up to 85% of their base salaries and up to 100% of their annual incentive awards. The plan also allows participants to defer receipt of up to 100% of
the shares issuable under any restricted stock units or performance-contingent phantom stock awards granted to executives under our long-term incentive program. Participants are always
vested in their deferrals to the plan and any related earnings. We contribute one dollar for each dollar of base salary deferred by participants in the plan, up to a maximum of 6% of the participant's
base salaries. We have established a grantor trust to fund our obligations under the deferred compensation plan. The trust has purchased corporate-owned life insurance to offset these obligations.
Participants have an unsecured contractual commitment by us to pay the amounts due under the deferred compensation plan.

Under
the plan, we credit each participant's account with the number of units equal to the number of shares or units that the participant could purchase or receive with the amount of
compensation deferred under the plan on the date we credit the participant's account, based upon the fair market value of the underlying investment on that date. We will pay the amount of compensation
deferred under the plan to the participant (or to his or her designated beneficiary in the event of death) in annual installments or in a lump sum, at the participant's election, following the
participant's termination of employment or on the date or dates specified by the participant in his or her payment election. The amount we pay will be based on the number of units credited to each
participant's account, valued on the basis of the fair market value of an equivalent number of shares or units of the underlying investment on the date payment occurs. We may also pay a participant
the amount of compensation deferred under the plan prior to the date the participant initially elected to receive payment if we determine that the employee has a demonstrated financial hardship.

The
following table shows information relating to the activity in the deferred compensation plan accounts for the executives named in this proxy statement during 2011:

Name

Executive
Contributions in
Last Fiscal Year
($)

Registrant
Contributions in
Last Fiscal Year
($)(1)

Aggregate Earnings
in Last Fiscal Year
($)

Aggregate
Withdrawals/
Distributions ($)

Aggregate Balance
at Last Fiscal Year
End ($)(2)

Steven F. Leer

838,803

37,528

(9,324,610

)



11,774,151

John T. Drexler

27,692

11,631

(72,900

)



78,314

John W. Eaves

92,715

17,680

(2,580,482

)



3,567,641

Paul A. Lang

67,629

9,471

385

(67,641

)

457,264

David N. Warnecke

52,056

7,719

(11,234

)

(18,693

)

602,815

(1)

Amounts
shown represent credits we made under our deferred compensation plan to the named executive's account that are intended to provide the named
executive with the full company matching contributions to which they would otherwise be entitled under our defined contribution plan but for certain limitations contained in the Code. We have included
these amounts in the column entitled "All Other Compensation" contained in the Summary Compensation Table.

Potential Payments Upon Termination of Employment or Change-in-Control

We maintain certain agreements or arrangements with each of the NEOs that provide for the payment or acceleration of certain benefits
in the event that such executive's employment is terminated without cause or following a change-in-control. In addition to the benefits described below, the executives named in
this proxy statement would also be entitled to receive certain benefits under our defined benefit pension plan, supplemental retirement plan and deferred compensation plan. You should see the
sub-section entitled "Pension Benefits" for more information on the benefits accumulated under our defined benefit pension plan and our supplemental retirement plan that are attributable
to each of the NEOs and the sub-section entitled "Non-Qualified Deferred Compensation" for more information on the aggregate balance maintained under our deferred compensation
plan by each of the NEOs.

Potential Payments Upon Termination of Employment

We maintain employment agreements with each of our executives, including the NEOs, and certain other key employees. Each of the
employment agreements has a term of one year that is automatically extended for successive one-year periods unless either party terminates the agreement upon at least one year notice prior
to the end of any one-year term. Under the employment agreements and certain other arrangements we have with the NEOs, we may be required to provide compensation in the event of a
termination of employment or a change in control of the company. As a condition to each executive's entitlement to receive payments under the employment agreements, the executive is required to
execute a waiver of claims against us and to abide by certain non-disclosure, non-competition and non-solicitation requirements. These restrictions prohibit
executives from engaging in any business that competes with any of our business

operations
for a period of six months following the date of termination and from soliciting for employment, hiring or retaining any of our employees for a period of one year following the date of
termination.

Voluntary termination and termination for cause  Each of the NEOs may terminate his or her employment at any time. In addition,
we may terminate the employment of the NEOs for cause at any time. Under the terms of the employment agreements with each NEO, a termination is for cause if it is for any of the following
reasons:



a willful and continual failure to perform his or her duties;



gross misconduct that is materially and demonstrably detrimental to us; or



the commission of a felony.

If
we terminate an executive's employment for cause or if an executive terminates his or her employment for any reason prior to a change of control or for other than good reason
following a change of control, then we will pay the executive an amount equal to the executive's accrued and unpaid base salary and unused vacation time. If we terminate an executive's employment for
cause or if the executive terminates his or her employment for any reason without our consent, then all of the unexpired, unvested restricted stock, restricted stock units, performance units, stock
options, performance-contingent phantom stock or other awards granted to the executive under our stock incentive plan that remain outstanding on the date of termination shall automatically be
forfeited. If we terminated each of the executives named in this proxy
statement for cause or if each of the NEOs terminated his or her employment on December 31, 2011, then the executives would not have been entitled to receive any amounts from us.

Termination without cause prior to a change of control  Each of the NEOs may be entitled to certain benefits if we terminate the
executive's employment for reasons other than cause. If we terminate an executive without cause prior to a change of control, then under the terms of the employment agreement we will pay the executive
a lump sum cash amount equal to the following:



one times (two times for Mr. Leer) the executive's annual base salary;



12 times (18 times for Mr. Leer) the effective monthly COBRA rate;



12 times (24 times for Mr. Leer) the applicable monthly life insurance premium rate;



a pro-rata portion of any amounts to which the executive would be entitled under our annual cash incentive
awards or our long-term cash and equity-based incentive awards;



one times the higher of the executive's annual cash incentive award for the most recent year or the average annual cash
incentive award for the three preceding years;



the matching contribution under our defined contribution plan and executive deferred compensation plan and the annual cash
balance credit amounts under our defined benefit plans as if the executive continued to participate in those plans for a period of 12 months (24 months for Mr. Leer) and the
amount of any related income taxes; and

In
addition, if we terminate an executive for reasons other than for cause prior to a change of control, all unexpired stock options held by the executive on the date of termination will
immediately vest and become exercisable by the executive in accordance with the terms of our stock incentive plan and related stock option award agreements. Also, we have agreed to reimburse the
executives named in this proxy statement for the cost of financial counseling services (up to a maximum of $5,000) for a period of 12 months (24 months for Mr. Leer), the cost of
reasonable outplacement services for a period of 12 months (24 months for Mr. Leer) and the amount of any excise taxes imposed on the executive under the Code.

The
following table shows the amounts each of the executives named in this proxy statement would receive if we terminated his or her employment for reasons other than for cause prior to
a change of control on December 31, 2011:

Steven F. Leer

John T. Drexler

John W. Eaves

Paul A. Lang

David N. Warnecke

Cash payments:

Cash severance

$

3,476,972

$

962,550

$

1,448,673

$

1,035,489

$

741,700

Healthcare coverage

31,050

20,700

20,700

20,700

20,700

Life insurance premiums

3,159

729

1,029

810

648

Incentive awards(1)

3,242,917

1,087,500

1,994,334

1,156,437

1,041,250

Retirement benefits

1,496,470

177,191

375,846

263,782

237,847

Financial counseling and outplacement services

30,000

20,000

20,000

20,000

20,000

Accrued salary and accrued vacation











Acceleration of equity awards:

Stock options

47,426

14,639

29,980

15,456

15,042

Total

8,327,994

2,283,309

3,890,562

2,512,674

2,077,187

(1)

For
purposes of estimating the amounts payable by us under our annual cash incentive awards for the second half of the year or our long-term
cash and equity-based incentive awards, we have assumed that we achieved target levels of performance under those awards.

Termination in connection with a change of control  Each of the NEOs may be entitled to certain benefits if we terminate the
executive's employment for reasons other than cause following a change of control or if the executive terminates his or her employment for good reason during the two years following a change of
control. Under the terms of the employment agreements with the NEOs, a termination is for good reason if it is for any of the following reasons:



a material diminution in position, title, duties, responsibilities or authority;



a reduction in base salary or a failure to increase base salary by a percentage that is similar to the average percentage
increase in base salary for other officers;

(i) the discontinuation of an incentive, retirement, stock ownership or health and welfare plan, (ii) the adoption
of changes to those plans that would adversely affect participation or materially reduce benefits or (iii) the reduction of incentive compensation levels;



the relocation of our executive offices outside the St. Louis metropolitan area or the failure to pay relocation
expenses, including the amount of any loss on the sale of a personal residence;



a material breach of the employment agreement; or



a failure to require a successor to assume the employment agreement.

Under
the terms of the employment agreements with each NEO, a change of control means any of the following:



a consolidation, merger or similar transaction in which we do not survive or in which shares of our common stock are
converted into cash, securities or other property, other than a merger in which the holders of our common stock immediately prior to the merger maintain substantially the same proportionate ownership
of the common stock of the surviving entity immediately after the merger;



the sale, lease, exchange or other transfer of all or substantially all of our assets;



the approval by our stockholders of a plan of liquidation or dissolution; or



the failure of our directors to constitute a majority of our board of directors at any time during any two consecutive
years.

If
we terminate an executive for reasons other than for cause following a change of control or if the executive terminates his or her employment for good reason during the two years
following a change of control, then under the terms of the employment agreement we will pay the executive a lump sum cash amount equal to the
following:



two times (three times for Mr. Leer) the executive's highest annual base salary during the preceding three years;



18 times the effective monthly COBRA rate;



24 times (36 times for Mr. Leer) the applicable monthly life insurance premium rate;



the full amount of any long-term cash awards and a pro-rata portion of any amounts to which the
executive would be entitled under our annual cash incentive awards;



two times (three times for Mr. Leer) the higher of the executive's annual cash incentive award for the most recent
year or the average annual cash incentive award for the three years preceding the date of termination;



the matching contribution under our defined contribution plan and non-qualified executive deferred
compensation plan and the annual credit amounts under our defined benefit plans as if the executive continued to participate in those plans for a period of 24 months (36 months for
Mr. Leer) and the amount of any related income taxes; and

In
addition to the foregoing, if we terminate an executive for reasons other than for cause following a change of control, all unexpired stock options held by the executive on the date
of termination will immediately vest and become exercisable by the executive in accordance with the terms of our stock incentive plan and related equity award agreements. Also, we have agreed to
reimburse each NEO for the cost of financial counseling services (up to a maximum of $5,000) for a period of 24 months (36 months for Mr. Leer), the cost of reasonable
outplacement services for a period of 24 months (36 months for Mr. Leer) and the amount of any excise taxes imposed on the executive under the Code. While employment agreements
entered into before January 2010 provide a gross-up provision for certain excise taxes, in addition to other taxes, our Board, upon the recommendation of the Committee, has established a
policy that no tax gross up provision is to be included in any employment agreement entered into after January 1, 2010.

The
following table shows the amounts each NEO would receive if we terminated their employment on December 31, 2011 for reasons other than for cause following a change of control
or if each of the executives named in this proxy statement terminated his or her employment on December 31, 2011 for good reason following a change of control:

Steven F. Leer

John T. Drexler

John W. Eaves

Paul A. Lang

David N. Warnecke

Cash payments:

Cash severance

$

7,505,916

$

1,925,100

$

2,897,346

$

2,070,978

$

1,825,100

Healthcare coverage

31,050

31,050

31,050

31,050

31,050

Life insurance premiums

4,738

1,458

2,057

1,620

1,296

Incentive awards(1)

536,250

180,000

285,750

198,521

120,000

Retirement benefits

2,108,984

309,878

676,571

470,569

438,158

Financial counseling and outplacement services

40,000

30,000

30,000

30,000

30,000

Accrued salary and accrued vacation











Excise tax and gross up(2)

5,022,815

1,702,038

0

1,605,555

1,229,529

Acceleration of equity awards:

Stock options(3)











Total

15,249,754

4,179,524

3,922,774

4,408,320

3,333,433

(1)

For
purposes of estimating the amounts payable by us under our annual cash incentive awards, we have assumed that we achieved target levels of performance
under those awards. Payouts under performance units would be triggered upon a change of control and, accordingly, we have not included those payouts in the table above. Instead, payouts under
performance units have been included in the table below under the heading "Potential Payments Upon Change-in-Control."

(2)

We
have assumed that the effective federal income tax rate is 35% and that the effective state income tax rate is 6%.

(3)

All
outstanding options become fully exercisable upon a change of control and, accordingly, have not been included in the table above. Instead, the value
has been included in the table below under the heading "Potential Payments Upon Change-in-Control."

Retirement, death and disability  In the event an executive's employment is terminated as a
result of his or her retirement, death or disability, then we will pay the executive an amount equal to the executive's accrued and unpaid base salary, unused vacation time and all other amounts,
including payouts under our annual cash incentive awards, that the executive has earned but which have not yet been paid. If an executive's employment is terminated as a result of his or her
retirement, death or disability, then all of the vested stock options that remain outstanding will remain exercisable for a period of one year from death or disability. In the event of a retirement,
the options are exercisable for a period earlier of 5 years or the term of the original grant. Any restricted stock, restricted stock units, performance units, performance-contingent phantom
stock or other awards granted to the executive under our stock incentive plan that remain outstanding on the date of termination are forfeited.

The
following table shows the amounts each NEO would receive if the employment of the executive terminated on December 31, 2011 as a result of his or her retirement, death or
disability:

Steven F. Leer

John T. Drexler

John W. Eaves

Paul A. Lang

David N. Warnecke

Cash payments:

Cash severance











Healthcare coverage











Life insurance premiums











Incentive awards(1)

$

536,250

$

180,000

$

285,750

$

198,521

$

120,000

Retirement benefits











Financial counseling and outplacement services











Accrued salary and accrued vacation











Excise tax and gross up











Acceleration of equity awards:

Stock options

47,426

14,639

29,980

15,456

15,042

Total

583,676

194,639

315,730

213,977

135,042

(1)

For
purposes of estimating the amounts payable by us under our annual cash incentive awards, we have assumed that we achieved target levels of performance
for the second half of the year under those awards.

Potential Payments Upon Change-in-Control

Under the terms of our stock incentive plan and the agreements governing the various awards outstanding at December 31, 2011,
each NEO would be entitled to certain benefits in the event a change in control occurs. Under the terms of our stock incentive plan, all outstanding stock options will become fully exercisable and
will remain exercisable for the original term of the options, all outstanding restricted stock and restricted stock units will become fully vested and be distributed to the executive, and all of the
performance units and performance-contingent phantom stock will be paid out in the event a change of control occurs.

Under
the terms of the stock incentive plan, a change in control means any change in control that would be required to be reported as such with the Securities and Exchange Commission,
including without limitation any of the following:



a consolidation or merger in which we do not survive or in which shares of our common stock are converted to cash,
securities or other property, other than a merger in which the holders of our common stock immediately prior to the merger maintain more than 50% of the ownership of common stock of the surviving
corporation immediately after the merger;



the sale, lease, exchange or other transfer of all or substantially all of our assets;



the adoption by our board of directors of a plan of liquidation or dissolution; or



the acquisition by any person of more than 20% of our outstanding common stock.

The
following table shows the amounts each NEO would receive if we had undergone a change of control on December 31, 2011.

Steven F. Leer

John T. Drexler

John W. Eaves

Paul A. Lang

David N. Warnecke

Cash payments:

Cash severance











Healthcare coverage











Life insurance premiums











Incentive awards(1)

$

7,315,000

$

2,475,000

$

4,634,000

$

2,612,500

$

2,475,000

Retirement benefits











Financial counseling and outplacement services











Accrued salary and accrued vacation











Excise tax and gross up











Acceleration of equity awards:

Restricted stock units and restricted stock(2)

532,154

107,374

350,417

549,204

95,766

Stock options

47,426

14,639

29,980

15,456

15,042

Total

7,894,580

2,597,013

5,014,397

3,177,160

2,585,808

(1)

For
purposes of estimating the amounts payable by us under performance unit awards, we have assumed that we achieved maximum levels of performance under
those awards.

(2)

For
purposes of estimating the amounts payable under the stock incentive plan in the event of a change of control, we have calculated the value of
accelerated vesting of restricted stock units and restricted stock by multiplying the number of shares underlying unvested restricted stock units outstanding at December 31, 2011 by the closing
price of our common stock on December 31, 2011.

Our director compensation program is designed to compensate our non-employee directors, through a simple and understandable
structure, for the amount of work required for a company of our size and scope and to align the interests of our non-employee directors with the long-term interests of our
stockholders. Directors who are employees do not receive separate retainers or attendance fees for their service as directors, and their compensation is discussed under "Executive Compensation" above.

The
Nominating and Corporate Governance Committee (the "Committee") periodically reviews the compensation structure and amounts for our non-employee directors. Our human
resources department supports the Committee by researching the structures and amounts of compensation programs sponsored by other similarly-sized public companies and compiling the results of that
research for the Committee. From time to time, the Committee may engage a compensation consultant to provide survey or proxy data on the structure and amount of director compensation for other
companies.

Compensation. Our Board has adopted the following compensation structure for our directors. All fees outlined below are paid on a
quarterly basis.

Annual retainer

$

120,000

Additional retainer  Lead Director

$

15,000

Additional retainer  Chairman of the Audit Committee

$

30,000

Additional retainer  Chairman of P & C Committee

$

15,000

Additional retainer  Chairman of other committees

$

10,000

Additional committee retainer fee  Audit Committee

$

15,000

Additional committee retainer fee  all other committees

$

10,000

New director fee

$

60,000

(1)

Restricted Stock Units

2,500

(2)

(1)

Non-employee
directors must defer 100% of the new director fee into a hypothetical investment in Arch Coal common stock pursuant to a deferred
compensation plan for non-employee directors described below.

(2)

Beginning
in 2012, the Board increased non-employee director compensation by 2,500 restricted stock units per year. These restricted stock units
vest on the day such director retires from the Board.

Deferred Compensation Plan. Our Board has adopted a deferred compensation plan for non-employee directors. Under the plan,
non-employee directors may choose to defer receipt of any or all of the compensation paid to them in a cash account that mirrors the gains and/or losses of a number of different investment
funds, one of which is a hypothetical investment in shares of our common stock. We credit each non-employee director's account with the number of units equal to the number of shares or
units that the non-employee director could purchase or receive with the amount of compensation deferred under the plan on the date we credit the non-employee director's
account, based upon the fair market value of the underlying investment on that date.

When
a director terminates his or her service as a director, we will pay the amount of compensation deferred under the plan to the director (or to his or her designated beneficiary in
the event of death) in annual installments or in a lump sum, at the director's election. The amount we pay will be based on the number of units credited to each director's account, valued on the basis
of the fair market value of an

equivalent
number of shares or units of the underlying investment on the date payment occurs. We may also pay a director the amount of compensation deferred under the plan prior to the termination of
a director's service as a director if the board of directors determines that the director has a demonstrated financial hardship.

Other Compensation Arrangements. In addition to the compensation elements described above, we sponsor a director matching gift program.
Under our
matching gift program, we donate $2.00 for each dollar contributed by a director to accredited institutions of higher education up to a maximum of $6,000 each year. We have included the matching gifts
paid on behalf of each of our non-employee directors for 2011 in the table below. We have included the matching gifts paid on behalf of Mr. Leer in the column titled "All Other
Compensation" in the Summary Compensation Table above. During 2011, we did not pay any matching gifts on behalf of Mr. Eaves. We reimburse each director for their travel expenses incurred in
connection with attendance at board and committee meetings and other matters related to service on our board of directors and for the costs of attending continuing education seminars. We also pay the
premiums for directors' liability insurance and travel accident insurance for each director. These amounts are not included in the table below since they are deemed to be business-related payments and
not perquisites. We do not maintain a directors' retirement plan, and non-employee directors do not participate in our health, welfare or benefit plans.

Stock Ownership Guidelines. In order to more closely align the interests of our non-employee directors with the long-term
interests of our stockholders, our board of directors has adopted stock ownership guidelines for non-employee directors. The guidelines establish a goal for each of our
non-employee directors to own a number of shares of our common stock equal in value to $300,000. Each non-employee director is expected to satisfy this goal within five years
of becoming a director. As of December 31, 2011, each of the non-employee directors who has been on our board of directors for at least five years satisfied the stock ownership goal
adopted by the board of directors. You should see the table under the heading "Security Ownership of Directors and Executive Officers" for more information about the beneficial ownership of our common
stock by our non-employee directors.

The Personnel and Compensation Committee is comprised entirely of independent directors and has the responsibility for reviewing and
recommending changes in our executive compensation policies and programs to the board of directors. The committee also reviews and makes recommendations for all compensation payments to our chief
executive officer and other executives, which are approved by the board of directors as a whole.

The
Personnel and Compensation Committee has reviewed and met with management to discuss the disclosures contained in the section of this proxy statement entitled "Executive
Compensation  Compensation Discussion and Analysis." Based on that review and discussions with management, the Personnel and Compensation Committee recommended to the board of
directors, and the board of directors approved, including the disclosures contained in the section entitled "Compensation Discussion and Analysis" in this proxy statement and, by incorporating that
section by reference, in the Annual Report on Form 10-K for the year ended December 31, 2011 for filing with the Securities and Exchange Commission.

The Audit Committee oversees the Company's financial reporting process on behalf of the board of directors. Management is primarily
responsible for the financial statements and reporting process, including the systems of internal controls, while the independent registered public accounting firm is responsible for performing an
independent audit of our financial statements in accordance with auditing standards generally accepted in the United States and expressing an opinion on the conformity of those financial statements
with accounting principles generally accepted in the United States.

In
this context, the Audit Committee has reviewed the Company's audited consolidated financial statements and has met with and held discussions with management, our internal auditors and
with Ernst & Young LLP, the Company's independent registered public accounting firm, to discuss those financial statements and related matters. The Audit Committee reviewed with our internal
and independent auditors the overall scope and plans for their respective audits. The Audit Committee also met, at least quarterly, with the auditors, with and without management present, to discuss
the results of their examinations, their evaluations of the Company's internal controls and the overall quality of the Company's financial reporting. The Audit Committee also reviewed with the
independent auditors their judgment as to the quality and the appropriateness of the Company's accounting principles and financial controls and such other matters as are required to be discussed with
the Audit Committee under auditing standards generally accepted in the United States.

The
Company's independent registered public accounting firm also provided to the Audit Committee the written disclosures and the letter prescribed by applicable requirements of the
Public Company Accounting Oversight Board regarding the independent registered public accounting firm's communications with the Audit Committee concerning independence, and the Audit Committee
discussed with the independent auditors that firm's independence, including those matters required to be discussed by Statement on Auditing Standards No. 61. The Audit Committee considered
whether the performance by Ernst & Young LLP of non-audit services was compatible with their independence.

In
reliance on the reviews and discussions referred to above, the Audit Committee recommended to the board of directors, and the board of directors approved, including the audited
consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2011 for filing
with the Securities and Exchange Commission. The Audit Committee has retained Ernst & Young LLP as the Company's independent registered public accounting firm for 2012.

While
the Audit Committee has the responsibilities and powers set forth in its charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the
Company's financial statements are complete and accurate or are in accordance with generally accepted accounting principles. This is the responsibility of management and the independent auditor.

The following table sets forth, as of March 1, 2012, information concerning the beneficial ownership of our common stock by each
director, each of the executives named in this proxy statement and all current directors and executive officers as a group. Under rules of the Securities and Exchange Commission, persons who have
power to vote or dispose of securities, either alone or jointly with others, are deemed to be the beneficial owners of such securities. Each person reflected in the table below has both sole voting
and investment power with respect to the shares included in the table, except as described in the footnotes below:

Name of Beneficial Owner

Number of
Actual Shares
Owned
Directly or
Indirectly(1)

Options
Exercisable
Within 60
Days(2)

Total
Beneficial
Ownership

Percent
of Class

Other
Stock-Based
Items(3)

Total
Stock-Based
Ownership

James R. Boyd, Director

102,078



102,078

*

110,725

212,803

John W. Eaves, President, Chief Operating Officer and Director

253,559

452,280

705,839

*

53,300

759,139

David D. Freudenthal, Director









7,435

7,435

Patricia F. Godley, Director

1,000



1,000

*

47,583

48,583

Douglas H. Hunt, Director

22,000



22,000

*

66,090

88,090

Brian J. Jennings, Director









37,881

37,881

J. Thomas Jones, Director









11,041

11,041

Steven F. Leer, Chairman and Chief Executive Officer

565,442

813,325

1,378,767

*

81,850

1,460,617

George C. Morris III, Director

10,653



10,653

*



10,653

A. Michael Perry, Director

14,898



14,898

*

35,733

50,631

Robert G. Potter, Director

36,000



36,000

*

59,411

95,411

Theodore D. Sands, Director

26,000



26,000

*

53,690

79,690

Wesley M. Taylor, Director

16,280



16,280

*

22,301

38,581

Peter I. Wold, Director

6,500



6,500

*

13,336

19,836

John T. Drexler, Senior Vice President and Chief Financial Officer

11,517

142,712

154,229

*

34,616

188,845

Paul A. Lang, Executive Vice President, Operations

65,416

192,017

257,433

*

33,000

290,433

David N. Warnecke, Senior Vice President-Marketing and Trading

11,641

192,225

203,866

*

26,400

230,266

All of our directors and executive officers as a group (23 persons)

1,277,226

2,376,582

3,653,808

2.0%

803,481

4,457,289

*

Less
than one percent of the outstanding shares.

(1)

Includes,
for executive officers, shares of restricted stock, shares of our common stock that the executives have elected to defer under our deferred
compensation plan for executive officers and indirect interests in shares of our common stock held under our defined contribution plan.

(2)

Represents
shares of our common stock that could be acquired by exercising stock options through April 30, 2012.

(3)

Includes,
for directors, unvested restricted stock units, indirect interests in shares of our common stock held under our deferred compensation plan for
non-employee directors. Includes, for executive officers, unvested restricted stock units awarded to executives under our equity-based compensation plans and indirect interests in shares
of our common stock held under our deferred compensation plan for executive officers. While restricted stock units and indirect interests in shares of our common stock under our deferred compensation
plans may not be voted or transferred, we have included them in the table as they represent an economic interest in our common stock that is subject to the same market risk as ownership of actual
shares of our common stock.

Based
on its filings with the Securities and Exchange Commission, T. Rowe Price Associates, Inc. is the beneficial owner of 24,900,456 shares of our common
stock as a result of acting as investment advisor to various investment companies registered under the Investment Company Act of 1940. T. Rowe Price Associates, Inc. has the sole voting power over
9,847,639 shares of our common stock and the sole dispositive power over 24,900,456 shares of our common stock. These securities are owned by various individual and institutional investors which T.
Rowe Price Associates, Inc. (Price Associates) serves as investment adviser with power to direct investments and/or sole power to vote securities. For purposes of the reporting requirements of the
Securities Exchange Act of 1934, Price Associates is deemed to be a beneficial owner of such securities; however, Price Associates expressly disclaims that it is, in fact, the beneficial owner of such
securities.

(2)

Based
on its filings with the Securities and Exchange Commission, Tradewinds Global Investors, LLC is the beneficial owner of 23,508,865 shares of
our common stock. Tradewinds Global Investors, LLC has the sole voting power over 19,160,526 shares of our common stock and sole dispositive power over 23,508,865 shares of our common stock.

(3)

Based
on its filings with the Securities and Exchange Commission, BlackRock, Inc. has the sole voting power and sole dispositive power over 15,452,296
shares of our common stock.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934 requires our directors, executive officers and any persons beneficially
holding more than ten percent of our common stock to report their ownership of common stock and any changes in that ownership to the Securities and Exchange Commission and the New York Stock Exchange.
The Securities and Exchange Commission has established specific due dates for these reports, and we are required to report in this proxy statement any failure to file by these dates. Based solely on a
review of the copies of the reports furnished to us and written representations that no other such statements were required, we believe that all such reports of our directors and executive officers
were filed on a timely basis.

If you wish to submit proposals for possible inclusion in our 2013 proxy materials, we must receive them at our principal executive
offices no later than the close of business on November 16, 2012. Proposals should be addressed to Robert G. Jones, Senior Vice President-Law, General Counsel and Secretary,
Arch Coal, Inc., One CityPlace Drive, Suite 300, St. Louis, Missouri 63141.

If
you wish to nominate directors and/or propose proper business from the floor for consideration at the 2013 annual meeting of stockholders, our bylaws provide
that:



you must notify our secretary in writing;



your notice must have been received at our headquarters not earlier than January 29, 2013 and not later than
February 18, 2013; and

We
will send copies of these requirements to any stockholder who writes to us requesting this information. Please note that these three requirements apply only to matters that you wish
to bring before your fellow stockholders at the 2013 annual meeting of stockholders without submitting them for possible inclusion in our 2013 proxy materials.

INTERNET AVAILABILITY OF PROXY MATERIALS Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on April 26, 2012

The notice of annual meeting, proxy statement and our 2011 annual report may be viewed online under "Annual
Reports" in the Investors section of our website at http://investor.archcoal.com/annuals.cfm. Information on our website does not constitute part of this proxy statement. You
may find more information about the date, time and location of the annual meeting of stockholders, as well as the items to be voted on by stockholders at the annual meeting, in the section of this
proxy statement entitled "Questions and Answers About the Annual Meeting." There, you will also find information about attending the annual meeting and voting your proxy, including where you may find
the individual control numbers necessary to vote your shares by telephone or over the Internet.

If
you are a stockholder of record and are interested in receiving future proxy statements and annual reports electronically, you should contact our transfer agent by accessing your
account at amstock.com and selecting "Shareholder Account Access." If you hold shares of our common stock through a broker, bank or other nominee, please refer to the instructions provided by that
entity for instructions on how to elect this option.

PROXY SOLICITATION

We are paying the cost of preparing, printing, and mailing these proxy materials. We will reimburse brokerage firms, banks and others
for their reasonable expenses in forwarding proxy materials to beneficial owners and obtaining their instructions.

Proxies
will be solicited by mail and also may be solicited by our executive officers and other employees personally, by telephone or by electronic means, but such persons will not be
specifically compensated for such services. It is contemplated that brokerage firms, banks, custodians, fiduciaries and other nominees will be requested to forward the soliciting material to the
beneficial owners of stock held of record by such persons, and we will reimburse them for their reasonable expenses incurred. If we decide to retain a proxy solicitor, we will pay the fees charged by
the proxy solicitor.

From downtown St. Louis: Take Highway 40 West approximately 14 miles to Interstate 270 North (Exit #25). Continue approximately
two miles on Interstate 270 North to Olive Boulevard (Exit #14). Take Olive Boulevard East one mile to CityPlace Drive. Turn North on CityPlace Drive and continue to our headquarters at CityPlace One.

From
Lambert International Airport: Take Highway 70 West approximately three miles to Interstate 270 South (Exit #232). Continue approximately six miles on Interstate 270 South to Olive
Boulevard (Exit #14). Take Olive Boulevard East one mile to CityPlace Drive. Turn North on CityPlace Drive and continue to our headquarters at CityPlace One.

By Order of the Board of Directors,

Robert G. JonesSenior Vice President  Law, General Counsel and Secretary

March 16, 2012

74

ANNUAL MEETING
OF STOCKHOLDERS OF ARCH COAL, INC. April 26, 2012 NOTICE OF INTERNET
AVAILABILITY OF PROXY MATERIALS: The Notice of Meeting and proxy statement
are available at http://investor.archcoal.com Please sign, date and mail your
proxy card in the envelope provided as soon as possible. Signature of
Stockholder Date: Signature of Stockholder Date: Note: Please sign exactly as
your name or names appear on this Proxy. When shares are held jointly, each
holder should sign. When signing as executor, administrator, attorney,
trustee or guardian, please give full title as such. If the signer is a
corporation, please sign full corporate name by duly authorized officer,
giving full title as such. If signer is a partnership, please sign in
partnership name by authorized person. To change the address on your account,
please check the box at right and indicate your new address in the address
space above. Please note that changes to the registered name(s) on the
account may not be submitted via this method. 1. Election of Directors: David
D. Freudenthal Patricia F. Godley George C. Morris, III Wesley M. Taylor
Peter I. Wold 2. Ratification of the appointment of the independent
registered public accounting firm. 3. Advisory vote to approve executive
compensation. 4. Shareholder proposal regarding the preparation of an
additional environmental report. This proxy, when properly executed, will be
voted in the manner directed herein. If no direction is made on any one or
more matters, this proxy will be voted FOR each nominee, FOR ratification of
the appointment of the independent registered public accounting firm, FOR the
advisory vote to approve executive compensation and AGAINST the shareholder
proposal, as applicable. The board of directors recommends a vote FOR each
nominee, FOR ratification of the appointment of the independent registered
public accounting firm, FOR the advisory vote to approve executive
compensation and AGAINST the shareholder proposal. Arch Coal, Inc. encourages
you to take advantage of the convenient ways by which you can vote your
shares. You can vote your shares electronically through the Internet or by
telephone. This eliminates the need to return the proxy card. YOUR VOTE IS
IMPORTANT. PLEASE VOTE IMMEDIATELY. If you vote over the Internet or by
telephone, please do not mail your card. FOR AGAINST ABSTAIN FOR ALL NOMINEES
WITHHOLD AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (See instructions below)
INSTRUCTIONS: To withhold authority to vote for any individual nominee(s),
mark FOR ALL EXCEPT and fill in the circle next to each nominee you wish to
withhold, as shown here: NOMINEES: THE BOARD OF DIRECTORS RECOMMENDS A VOTE
FOR ALL NOMINEES IN THE ELECTION OF DIRECTORS, FOR RATIFICATION OF THE
APPOINTMENT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, FOR THE
ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION AND AGAINST THE SHAREHOLDER
PROPOSAL. PLEASE SIGN, DATE AND RETURN YOUR PROXY CARD PROMPTLY IN THE
ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE
Please detach along perforated line and mail in the envelope provided.
20533300000000001000 7 042612 Please check here if you plan to attend the
meeting:

0 14475 ARCH
COAL, INC. This proxy is solicited on behalf of the Board of Directors of
Arch Coal, Inc. for the annual meeting of stockholders to be held on April
26, 2012 The undersigned hereby appoints STEVEN F. LEER and ROBERT G. JONES,
and each of them, with power of substitution, as the proxy of the undersigned
to represent the undersigned and to vote all shares of common stock which the
undersigned would be entitled to vote, if personally present at the annual
meeting of stockholders of Arch Coal, Inc. to be held at its headquarters at
CityPlace One, One CityPlace Drive, St. Louis, Missouri 63141, at 10:00 a.m.,
Central time, on Thursday, April 26, 2012, in the lower level auditorium, and
at any adjournments thereof, with all powers the undersigned would possess if
present at such meeting on the matters set forth on the reverse side hereof
and all other matters properly coming before the meeting. If the undersigned
is a participant in the Arch Coal, Inc. Employee Thrift Plan and this proxy
card is received on or before April 16, 2012, then this card also provides
voting instructions to the trustee of such plan to vote at the annual
meeting, and any adjournments thereof, all shares of Arch Coal common stock
held in the undersigned's plan account as specified upon the matters set
forth on the reverse side hereof and all other matters properly coming before
the meeting. If the undersigned is a participant in one of these plans and
does not instruct the trustee by April 16, 2012, then the trustee will vote the
undersigned's plan account shares in proportion to the votes of the other
participants in that plan. In addition, the trustee will vote unallocated
shares in the plan in direct proportion to voting by allocating shares for
which instructions have been received. PLEASE SEE REVERSE SIDE FOR
INFORMATION ON VOTING YOUR PROXY BY TELEPHONE OR INTERNET. The Proxies cannot
vote your shares unless you vote. YOUR VOTE IS IMPORTANT. THANK YOU FOR
VOTING YOUR SHARES. ARCH COAL, INC. Annual Meeting of Stockholders Thursday,
April 26, 2012 ADMISSION TICKET *REQUIRED FOR MEETING ATTENDANCE * PERMITS
ONE TO ATTEND* YOUR VOTE IS IMPORTANT!

Signature of
Stockholder Date: Signature of Stockholder Date: Note: Please sign exactly as
your name or names appear on this Proxy. When shares are held jointly, each
holder should sign. When signing as executor, administrator, attorney,
trustee or guardian, please give full title as such. If the signer is a
corporation, please sign full corporate name by duly authorized officer,
giving full title as such. If signer is a partnership, please sign in
partnership name by authorized person. To change the address on your account,
please check the box at right and indicate your new address in the address
space above. Please note that changes to the registered name(s) on the
account may not be submitted via this method. 1. Election of Directors: David
D. Freudenthal Patricia F. Godley George C. Morris, III Wesley M. Taylor
Peter I. Wold 2. Ratification of the appointment of the independent
registered public accounting firm. 3. Advisory vote to approve executive
compensation. 4. Shareholder proposal regarding the preparation of an
additional environmental report. This proxy, when properly executed, will be
voted in the manner directed herein. If no direction is made on any one or
more matters, this proxy will be voted FOR each nominee, FOR ratification of
the appointment of the independent registered public accounting firm, FOR the
advisory vote to approve executive compensation and AGAINST the shareholder
proposal, as applicable. The board of directors recommends a vote FOR each
nominee, FOR ratification of the appointment of the independent registered
public accounting firm, FOR the advisory vote to approve executive
compensation and AGAINST the shareholder proposal. Arch Coal, Inc. encourages
you to take advantage of the convenient ways by which you can vote your shares.
You can vote your shares electronically through the Internet or by telephone.
This eliminates the need to return the proxy card. YOUR VOTE IS IMPORTANT.
PLEASE VOTE IMMEDIATELY. If you vote over the Internet or by telephone,
please do not mail your card. FOR AGAINST ABSTAIN FOR ALL NOMINEES WITHHOLD
AUTHORITY FOR ALL NOMINEES FOR ALL EXCEPT (See instructions below)
INSTRUCTIONS: To withhold authority to vote for any individual nominee(s),
mark FOR ALL EXCEPT and fill in the circle next to each nominee you wish to
withhold, as shown here: NOMINEES: ANNUAL MEETING OF STOCKHOLDERS OF ARCH
COAL, INC. April 26, 2012 INTERNET - Access www.voteproxy.com and follow
the on-screen instructions. Have your proxy card available when you access
the web page. TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) in
the United States or 1-718-921-8500 from foreign countries from any
touch-tone telephone and follow the instructions. Have your proxy card
available when you call. Vote online/phone until 11:59 PM EST the day before
the meeting. MAIL - Sign, date and mail your proxy card in the envelope
provided as soon as possible. IN PERSON - You may vote your shares in person
by attending the Annual Meeting. PROXY VOTING INSTRUCTIONS Please detach
along perforated line and mail in the envelope provided IF you are not voting
via telephone or the Internet. THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR
ALL NOMINEES IN THE ELECTION OF DIRECTORS, FOR RATIFICATION OF THE
APPOINTMENT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, FOR THE
ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION AND AGAINST THE SHAREHOLDER
PROPOSAL. PLEASE SIGN, DATE AND RETURN YOUR PROXY CARD PROMPTLY IN THE
ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE 20533300000000001000
7 042612 COMPANY NUMBER ACCOUNT NUMBER NOTICE OF INTERNET AVAILABILITY OF
PROXY MATERIALS: The Notice of Meeting and proxy statement are available at
http://investor.archcoal.com Please check here if you plan to attend the
meeting: x